Which Federal Form do employers have new employees complete to determine the correct federal income tax withholding?

Employers require new employees to complete the W-4 form to determine the appropriate federal income tax withholding from their paychecks. The W-4 allows employees to provide crucial information such as their filing status, number of dependents, and any additional withholding amounts they may request. By evaluating this information, employers can accurately calculate how much federal income tax to withhold from the employee’s earnings, ensuring compliance with tax regulations and preventing under-withholding or over-withholding.

In contrast, the W-2 form is utilized by employers to report employees' annual wages and the taxes withheld from them, rather than for determining withholding at the start of employment. The 1040 form is an individual income tax return that taxpayers use to report their income and calculate their tax liability, unrelated to the withholding process. The 1065 form is used for partnerships to report income, deductions, and other financial information rather than individual employee withholding. Therefore, the W-4 is specifically designed for the task of determining federal income tax withholding for new employees.