Which document is used to report wages and taxes withheld to the IRS?

Which document is used to report wages and taxes withheld to the IRS?

• A. W-2 Form
• B. W-4 Form
• C. 1099-MISC
• D. Schedule SE

Answer: (A)

Wages and taxes withheld are reported to the IRS on the W-2 form. This document is prepared by an employer at year’s end and shows exactly how much an employee was paid in wages, tips, and other compensation, plus how much federal income tax was withheld, along with Social Security and Medicare taxes. It also lists any state or local taxes withheld when applicable. The W-2 is the official statement used to prepare an individual’s tax return and is filed with the IRS while a copy is given to the employee as part of their tax records. The withholding form employees fill out to influence how much is taken from each paycheck isn’t used to report wages to the IRS; that form (the W-4) is used to tell the employer how much to withhold based on allowances and filing status. The 1099-MISC is for reporting payments to non-employees, such as independent contractors, not wages paid to employees. Schedule SE is part of the self-employment tax calculation for those who are self-employed, not for reporting wages.

Wages and taxes withheld are reported to the IRS on the W-2 form. This document is prepared by an employer at year’s end and shows exactly how much an employee was paid in wages, tips, and other compensation, plus how much federal income tax was withheld, along with Social Security and Medicare taxes. It also lists any state or local taxes withheld when applicable. The W-2 is the official statement used to prepare an individual’s tax return and is filed with the IRS while a copy is given to the employee as part of their tax records.

The withholding form employees fill out to influence how much is taken from each paycheck isn’t used to report wages to the IRS; that form (the W-4) is used to tell the employer how much to withhold based on allowances and filing status. The 1099-MISC is for reporting payments to non-employees, such as independent contractors, not wages paid to employees. Schedule SE is part of the self-employment tax calculation for those who are self-employed, not for reporting wages.