Which tax form is typically issued to employees?

• A. W-2 tax form.
• B. 1099 tax form.
• C. W-4 tax form.
• D. 1040 tax form.

Answer: (A)

The form issued to employees is the W-2. It provides a yearly summary of an employee’s wages and the taxes withheld, including federal and state income taxes as well as Social Security and Medicare taxes. Employers prepare a W-2 for each employee and give a copy to the employee, while also sending copies to the IRS and the Social Security Administration. Employees use the information on the W-2 to fill out their personal income tax return (Form 1040).

The other forms have different roles: a 1099 is used to report payments to non-employees, such as independent contractors; a W-4 is filled out by the employee to tell the employer how much should be withheld from wages; and a 1040 is the actual individual income tax return that a person files, not the form issued to employees.