Florida Building Contractor Business/Finance Practice Exam

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Prepare for the Florida Building Contractor Exam with comprehensive study resources and practice questions. This quiz focuses on the business and finance aspects of contracting, helping you understand critical topics needed for passing the exam.

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What must employees complete and file to show wages paid and taxes withheld for the year?

Form 1040
Form W-2
Form I-9
Form 1099

The correct answer is: Form W-2

Employees must complete and file Form W-2 to report wages paid and taxes withheld for the year. The W-2 form is officially known as the Wage and Tax Statement, and it is issued by employers to their employees. This document summarizes the total earnings and the amount of federal, state, and other taxes withheld from those earnings throughout the calendar year. The IRS requires employers to send these forms to both employees and the Social Security Administration to ensure accurate processing of tax returns and to maintain proper records of employees' earnings for Social Security benefits. Form 1040 is an individual income tax return used by taxpayers to report their annual income and taxes for the IRS, but it does not specifically record wages paid and taxes withheld. Form I-9 is used for verifying the identity and employment authorization of individuals hired to work in the United States, and it does not pertain to wage reporting. Form 1099, on the other hand, is used to report income other than wages, salaries, and tips, such as payments to independent contractors, thus it is not applicable for employees in the context of reporting wages and taxes withheld.