Which format to convert to?

I just edited a image in Photoshop to comprise of different shades of gray, white being the main surface of the material and black being the very bottom, I know I can set the depth of the bit, what I would like to know is should I just convert the JPEG image to SVG or some other format?
The outer edges of the logo is white, the lettering is white but the rest of it is in four different shades of gray, my understanding is that the different grays will be cut to different deaths without me having to do anything, is this correct or am I overthinking it?

Youd need to use .svg for the layering to work.

Otherwise when easel image traces the jpeg it will combine the different shades into a single design element.

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