Which document shows an employee's deductions for income and FICA taxes?

Which document shows an employee's deductions for income and FICA taxes?

• A. W-4
• B. W-2
• C. W-3
• D. W-5

Answer: (B)

The document that shows an employee's deductions for income and FICA taxes is the W-2 form. This annual statement reports the total amount of wages earned and the taxes withheld from those earnings, including federal income tax, Social Security tax, and Medicare tax. Employers are required to provide a W-2 to each employee at the end of the tax year, summarizing the employee's taxable income and withholdings, which is crucial for completed tax filings. In contrast, the W-4 form is used by employees to indicate their withholding allowances to their employer, the W-3 form is a summary of W-2 forms which the employer submits to the Social Security Administration, and the W-5 form is related to the earned income credit. None of these forms provide the detailed listing of withholdings like the W-2 does. Therefore, the W-2 is the correct choice for identifying income and FICA tax deductions.

The document that shows an employee's deductions for income and FICA taxes is the W-2 form. This annual statement reports the total amount of wages earned and the taxes withheld from those earnings, including federal income tax, Social Security tax, and Medicare tax. Employers are required to provide a W-2 to each employee at the end of the tax year, summarizing the employee's taxable income and withholdings, which is crucial for completed tax filings.

In contrast, the W-4 form is used by employees to indicate their withholding allowances to their employer, the W-3 form is a summary of W-2 forms which the employer submits to the Social Security Administration, and the W-5 form is related to the earned income credit. None of these forms provide the detailed listing of withholdings like the W-2 does. Therefore, the W-2 is the correct choice for identifying income and FICA tax deductions.