What type of income is reported by employers on Form W-2?

Employers report gross income on Form W-2. This form summarizes the total wages earned by an employee over a year before any deductions for taxes, retirement contributions, or other withholdings are taken out. Gross income includes salaries, wages, bonuses, and other forms of compensation. It provides a comprehensive picture of what an employee earned during the tax year, which is crucial for individuals when they prepare their tax returns.

While taxable income relates to the portion of income that is subject to income tax after certain deductions are applied, this is not what is reported on the W-2. Similarly, net income refers to the amount left after deductions are taken, which also does not appear on the form. Bonus income could be included in gross income but is not a standalone category in the context of the W-2. Thus, the correct understanding aligns with the concept of gross income as it pertains to the reporting requirements of the W-2 form.