What is included on Form W-2?

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Multiple Choice

What is included on Form W-2?

Explanation:
Form W-2 is the Wage and Tax Statement that employers use to report what an employee earned and the taxes withheld. It shows the total amount of wages, tips, and other compensation that are subject to federal income tax, Social Security, and Medicare. This is exactly what's recorded in Box 1 as wages, tips, and other compensation, covering salaries, bonuses, reported tips, and other taxable pay. Saying wages only would miss tips and other compensation, while tips only would miss wages, and None would imply nothing is reported, which isn’t the case.

Form W-2 is the Wage and Tax Statement that employers use to report what an employee earned and the taxes withheld. It shows the total amount of wages, tips, and other compensation that are subject to federal income tax, Social Security, and Medicare. This is exactly what's recorded in Box 1 as wages, tips, and other compensation, covering salaries, bonuses, reported tips, and other taxable pay. Saying wages only would miss tips and other compensation, while tips only would miss wages, and None would imply nothing is reported, which isn’t the case.

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