What does the W-2 and Earnings Summary report provide to the employee?

The W-2 and Earnings Summary report provides critical financial information to the employee, detailing their total wages earned over the year and the taxes that have been withheld from their paychecks. Specifically, the W-2 form reports annual earnings and the various federal, state, and local taxes withheld, along with contributions to Social Security and Medicare. This information is essential for employees to accurately complete their tax returns, as it summarizes their income for the year and ensures they understand their tax liabilities.

The report focuses on fiscal information, distinguishing it from other types of reports. Personal tax information is particularly important as it enables employees to see how their earnings translate into tax responsibilities. Therefore, it serves as a pivotal document for employees during tax season and offers a comprehensive view of their earnings throughout the year.