Which form do businesses use to determine the number of deductions for an employee?A.1040B.W-2C.W-4D.I-9
Question
Which form do businesses use to determine the number of deductions for an employee?
A. 1040
B. W-2
C. W-4
D. I-9
Solution
To determine the number of deductions for an employee, businesses use the W-4 form. This form allows employees to indicate their marital status and the number of allowances they are claiming, which in turn helps employers calculate the appropriate amount of federal income tax to withhold from their paychecks.
Here’s a quick explanation of the other forms for clarity:
- A. 1040: This is an individual income tax return form used by U.S. taxpayers to report their annual income.
- B. W-2: This form reports wages paid to employees and the taxes withheld from them.
- D. I-9: This form is used to verify an employee's eligibility to work in the United States.
Final Answer
C. W-4
Similar Questions
The form used by employers to show how much an employee earned that year and all taxes paid is a _____.A.1040B.W-4C.1099D.W-2SUBMITarrow_backPREVIOUS
Employers use a _____ form to determine how much of your paycheck to withhold for income taxes.A.1099B.1040C.W-2D.W-4SUBMITarrow_backPREVIOUS
Independent contractors receive a _____ form from their clients that verifies their earnings for the year.A.1099B.W-4C.1040D.W-2SUBMITarrow_backPREVIOUS
Which form does a person complete to demonstrate his or her legal ability to work and pay taxes on income?A.1040B.W-2C.W-4D.I-9
Using the income tax table below, what is the deduction with taxable income of $1016.50 and claim code 8?
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.