Final answer:
Wages for a deceased employee who received a paycheck must be reported on Form W-2, even if the check is reissued to the employee's personal representative after death. Therefore, correct option is B.
Step-by-step explanation:
If an employee dies after receiving a paycheck but before cashing it, and the check is subsequently reissued to the employee's personal representative, the wages must still be reported on Form W-2.
This form is used by employers to report an employee's annual income, including wages, tips, and other types of compensation. The employee's earnings up to the date of death should be reported in the same manner as they would if the employee were still living.
If the paycheck is reissued to the estate or personal representative after the employee's death, it should still be reported on Form W-2, reflecting the total wages paid during the tax year while the employee was alive.