What does the W-4 form indicate to the employer?

What does the W-4 form indicate to the employer?

• A. The employee's salary expectations
• B. The number of hours the employee will work
• C. The employee's tax situation for withholding federal taxes
• D. The employee's retirement plan choices

Answer: (C)

The W-4 form is specifically designed to inform employers about an employee's tax situation, particularly regarding federal income tax withholding. When an employee fills out this form, they provide details such as their filing status, the number of allowances they claim, and any additional amount they want withheld from their paychecks. This information is vital for the employer to accurately calculate the appropriate amount of federal taxes to deduct from the employee's earnings. In contrast, the other options do not pertain to the purpose of the W-4 form. For example, salary expectations, work hours, and retirement plan choices are not relevant to the W-4's intent, which solely focuses on tax withholding. Therefore, the correct answer highlights the fundamental role of the W-4 in the context of payroll and tax compliance.

The W-4 form is specifically designed to inform employers about an employee's tax situation, particularly regarding federal income tax withholding. When an employee fills out this form, they provide details such as their filing status, the number of allowances they claim, and any additional amount they want withheld from their paychecks. This information is vital for the employer to accurately calculate the appropriate amount of federal taxes to deduct from the employee's earnings.

In contrast, the other options do not pertain to the purpose of the W-4 form. For example, salary expectations, work hours, and retirement plan choices are not relevant to the W-4's intent, which solely focuses on tax withholding. Therefore, the correct answer highlights the fundamental role of the W-4 in the context of payroll and tax compliance.