Certified Medical Assistant Practice Exam

When should the W-2 form, the wage and tax statement, be given to an employee?

1. Quarterly to track income

2. Semi-annually for tax purposes

3. Annually in January

4. Biennially for legal compliance

The correct answer is: Annually in January

The W-2 form, which serves as a wage and tax statement, must be provided to employees annually, typically by January 31 of the following year. This timing is crucial because it allows employees to accurately report their earnings and tax withholdings when filing their tax returns with the Internal Revenue Service (IRS). The annual issuance aligns with the tax year, providing a complete summary of the employee's income, Social Security wages, Medicare wages, and other relevant tax information for that calendar year. Therefore, receiving the W-2 form in January gives employees enough time to prepare their tax returns before the filing deadline. In contrast, the other options suggest more frequent distributions, such as quarterly or semi-annually, which do not comply with IRS regulations regarding the W-2 form's distribution. Legal compliance dictates that the W-2 is an annual summary, reinforcing the importance of option C as the correct answer.