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

The primary purpose of the W-2 form is to report wages paid to employees and withholdings from paychecks. This form is generated by employers and details the total earnings of an employee for a given tax year as well as the various deductions made from their paycheck, including federal and state income tax withholdings, Social Security, and Medicare taxes.

This information is critical because it is used by employees to accurately file their personal tax returns, ensuring they report income and claim the appropriate deductions and credits. The IRS also uses the W-2 form to track income and verify that the correct amount of taxes has been collected.

The other options do not reflect the primary function of the W-2. Documenting employee hours worked is typically done through time sheets or payroll systems, not the W-2 form. While the W-2 does contain some information that may touch upon an employee's tax situation, that is not its primary purpose; instead, it's focused on reporting income and withholdings. Lastly, benefits paid to an employee are usually handled through other specific forms and do not fall under the scope of what the W-2 addresses.