Which report is sent from the employer to both the IRS and the employee showing gross income, total taxes paid, and total voluntary deductions?

Which report is sent from the employer to both the IRS and the employee showing gross income, total taxes paid, and total voluntary deductions?

• A. W2
• B. W4
• C. Garnishment of wages
• D. Termination

Answer: (A)

Form W-2 is the document employers issue at year end that reports an employee’s total pay and tax withholdings for the year. It goes to the employee and to the IRS and shows gross pay, the federal income tax withheld, and amounts withheld or contributed to voluntary deductions like retirement plans or pre‑tax benefits. This summary is the official record used when filing a personal tax return. A W-4 is the form the employee completes to tell the employer how much to withhold, not a year‑end report sent to the IRS and employee. Garnishment of wages is a court‑ordered deduction, not a standard annual report, and termination is an employment event, not a financial report. Therefore, the report described is the W-2.

Form W-2 is the document employers issue at year end that reports an employee’s total pay and tax withholdings for the year. It goes to the employee and to the IRS and shows gross pay, the federal income tax withheld, and amounts withheld or contributed to voluntary deductions like retirement plans or pre‑tax benefits. This summary is the official record used when filing a personal tax return. A W-4 is the form the employee completes to tell the employer how much to withhold, not a year‑end report sent to the IRS and employee. Garnishment of wages is a court‑ordered deduction, not a standard annual report, and termination is an employment event, not a financial report. Therefore, the report described is the W-2.