Understanding Form W-2: Wage and Tax Statement

What is the primary purpose of Form W-2?

• To claim tax deductions

• To apply for a new job

• To report business expenses

• To report an employee's annual wages and taxes withheld

Who is responsible for sending out Form W-2?

• The employee

• The employer

• The IRS

• The Social Security Administration

By what date must employers send Form W-2 to employees?

• April 15

• March 15

• December 31

• January 31

Which box on Form W-2 shows taxable income?

• Box 7

• Box 3

• Box 5

• Box 1

What information is included in Boxes A-F on Form W-2?

• Taxable income and federal tax withheld

• Employee and employer information

• Social Security and Medicare taxes

• State and local taxes

What does Box 12 on Form W-2 typically include?

• Social Security tax withheld

• Federal income tax withheld

• Other types of compensation or reductions from taxable income

• State income tax withheld

What is the purpose of Form W-4?

• To report annual wages

• To claim student loan interest

• To determine tax withholding from paychecks

• To report gambling winnings

Which form is used by independent contractors instead of a W-2?

• Form 1040

• Form 1099

• Form W-4

• Form 1098

What does Box 10 on Form W-2 report?

• Dependent care benefits

• Medicare tax withheld

• State income tax withheld

• Deferred compensation

What is the employee portion of the Medicare tax as shown on Form W-2?

• 0.9%

• 6.2%

• 1.45%

• 2.9%