Which form is completed by employers and sent to federal tax authorities to report wages and taxes withheld?

• A. Vision statement
• B. Variance
• C. W-2 income tax form
• D. Warm-up activity

Answer: (C)

Reporting wages and taxes withheld to the federal government is done with the W-2 income tax form. Employers prepare a W-2 for each employee, summarizing total wages and other compensation, and detailing federal income tax withheld along with Social Security and Medicare taxes (and any state/local withholdings). The form is filed with the Social Security Administration and provided to the employee by January 31 of the following year, so the employee can use it to file their personal tax return. The other options don’t relate to reporting wages and withholdings: a vision statement describes a company’s long-term goals, a variance is a statistical measure, and a warm-up activity is an introductory exercise.