What is the primary purpose of the W-2 form?

The primary purpose of the W-2 form is to report tax withholdings for the IRS. Employers use this form to summarize an employee's annual earnings and the amount of taxes withheld from their paycheck. Each year, the W-2 is provided to employees by January 31st and is also sent to the IRS. This form includes critical information such as the employee’s total wages, tips, and other compensation, as well as the taxes withheld throughout the year, including federal income tax, Social Security, and Medicare taxes. This ensures that employees can accurately report their income and tax obligations when filing their tax returns.

Options that involve tracking employee work hours, calculating payroll taxes owed, or providing performance reviews do not align with the main function of the W-2. While aspects of payroll processing may involve these other elements, they do not pertain specifically to the purpose of the W-2 form itself.