Annual Wage Reporting Definition

Term Definition
Employers have to report employee wages and tax withholding information annually on Form W-2 to the Social Security Administration (SSA), as part of their annual wage reporting responsibilities.

Extended Definition
Annual wage reporting can be called a system of reporting employee payroll wages and taxes withheld from the same, to the Social Security Administration. The information is reported on Form W-2. The filed reports serve as the source of workers’ earning records, which in addition to self-employment income, is used to assess Social Security benefits for workers. This earnings information allows the SSA to credit earnings correctly to individual workers’ records. The W-2 data is also submitted to the IRS to verify against the quarterly tax return totals filed by employers. TheSocial Security Administrationprovides employers detailed information about reporting annual wages.

Related Article:
Filing an Annual Wage Report