Form W-2 serves which of the following purposes? 

A. It establishes the employer's identification number.
B. It requires employers to pay a percentage of each employee's income.
C. It shows the employee's total taxable income for the previous year.
D. It is a complete accounting of tax deposits.
E. It summarizes taxes withheld from employee's paychecks.

C. It shows the employee's total taxable income for the previous year.
Form W-2 shows the employee's total taxable income for the previous year, along with total deductions paid.