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An employer is required to send a W-2 form to each employee annually to report their income and the taxes withheld throughout the year. The W-2 provides essential information such as total earnings, Social Security contributions, and federal and state tax withholdings. This document is crucial for employees when they prepare their tax returns, as it summarizes their taxable income for the year.

In contrast, a 1099 form is typically used for independent contractors or freelancers, not regular employees, and is meant for reporting income received by non-employees. The 1040 form is the individual income tax return that individuals complete to report their annual income and calculate their tax liability, but it is not something an employer sends. The W-4 form is filled out by employees to inform their employer about their tax withholding preferences, but it is not an annual report of income. Therefore, the W-2 is the specific document that fulfills the employer's obligation to report employee income and tax withholdings to both the employee and the IRS.