What is a "W-2"?

A "W-2" is indeed an annual employee wage and tax statement. This form is crucial in the United States for reporting an employee's annual wages and the amount of taxes withheld from their paycheck. Employers are required to provide this statement to their employees by the end of January each year, reflecting the earnings and withholdings from the previous calendar year.

The importance of the W-2 form lies in its role in the tax filing process; employees use it to complete their tax returns. It provides essential information such as the total wages earned, Social Security and Medicare taxes withheld, and any other deductions or contributions made. Understanding the function of the W-2 is critical for individuals in financial management or payroll roles as well as for employees monitoring their income and tax obligations.

In the context of the other options, a type of business registration refers to the process of officially registering a business entity, a state tax form is a document specifically for state-level taxes, and a document for job applications is typically a resume or cover letter, none of which capture the specific purpose and use of the W-2 form.