To calculate the amount to withhold in taxes from an employee, the employer should use the employee's what form?

Prepare for the Tennessee Business and Law Exam. Study using flashcards and multiple-choice questions with explanations and hints. Ace your exam!

The correct form for an employer to use when calculating the amount to withhold in taxes from an employee is the W-4. This form is specifically designed for employees to inform their employers about their filing status and the number of allowances they wish to claim for tax withholding purposes. The information provided on the W-4 helps the employer determine the appropriate amount of federal income tax to withhold from the employee's paycheck.

The W-2 is a tax form that employers must send to their employees at the end of the year, summarizing the employee's earnings and the total taxes withheld, but it is not used for withholding calculations. The 1099 form is typically used for reporting income paid to independent contractors and does not apply to regular employees for tax withholding. The IRS Form 1040 is an individual income tax return used for filing taxes at the end of the tax year and does not relate to the withholding process. Therefore, the W-4 is the essential form that sets the stage for proper tax withholding from an employee's paycheck.

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