Future Business Leaders of America (FBLA) Accounting Practice Test

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Prepare for the FBLA Accounting Test with practice quizzes and comprehensive questions. Each question is designed to help deepen your understanding and enhance your readiness for the exam. Are you ready to excel?

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Which form summarizes the information from Form W-2?

Form 940
Form 941
Form W-3
Form 8109

The correct answer is: Form W-3

Form W-3 is the correct choice because it serves as a summary of the information reported on Form W-2, which is issued by employers to report wages and taxes withheld for their employees. Form W-3 compiles the total earnings submitted on all W-2s issued by an employer during the tax year and includes the total social security wages and Medicare wages, along with the total amount of taxes withheld. This form is essential for submitting the W-2 information to the Social Security Administration (SSA) and provides a consolidated overview that helps ensure accurate reporting and processing of employee earnings records. By filing W-3 alongside W-2 forms, employers fulfill their reporting obligations to the SSA, making it a crucial part of the year-end tax reporting process. In contrast, other forms listed serve different purposes: Form 940 is an annual tax return for federal unemployment tax; Form 941 reports quarterly payroll and payroll taxes; and Form 8109 is used for making federal tax deposits. Thus, these forms do not summarize the information from Form W-2, making W-3 the appropriate answer.