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. The Social Security Administration provides employers detailed information about reporting annual wages.

Related Article:
Filing an Annual Wage Report