Adult Roles and Responsibilities Practice Test

The year-end form that shows earnings and withholdings is the W-2. Employers issue this form to employees and file copies with the IRS, detailing total wages and other compensation as well as federal, Social Security, and Medicare taxes withheld (and any state or local withholdings if applicable). It’s what you use to prepare your personal income tax return for the year. The form used to determine how much to withhold from each paycheck is the W-4, not a year-end summary. The I-9 is for verifying eligibility to work and doesn’t report earnings or withholdings. A budget is a financial plan, not a payroll or tax form.