What does the IRS require employers to report on Form W-2?

Employers are required by the IRS to report employee wage and salary information on Form W-2. This form serves as a statement of earnings for employees and includes critical details such as total wages earned, tips, other compensation, and federal income tax withheld throughout the year. Providing a comprehensive overview of an employee's taxable compensation ensures that both the employee and the IRS have accurate records for tax reporting purposes.

The other options do not capture the full scope of what is reported on Form W-2. For instance, reporting only final salary amounts or annual bonuses does not address the requirement to include other types of compensation and tax withholdings. Likewise, non-cash benefits, while important, are not the sole focus of the W-2, which is primarily centered on wages and salaries.