The file that serves as a basis for reporting payroll information to governmental agencies and preparing Form W-2 is the:
A)labor time record.
B)payroll record.
C)employee's earnings record.
D)labor cost summary.

Question

Quizplus · Accepted Answer

The employee's earnings record is a comprehensive document that details an employee's compensation, including gross wages, tax withholdings, and other payroll deductions. It is used as the basis for reporting payroll information to governmental agencies and preparing Form W-2, which is a tax document that reports an employee's annual wages and tax withholdings to the IRS. The other options listed may be used in the payroll process, but they are not specifically used for reporting purposes or for preparing Form W-2.

The File That Serves as a Basis for Reporting Payroll