Final answer:
A W-4 form must be filled out when someone is hired to determine the income tax withholding from their paycheck. It informs the employer of the employee's tax situation and affects the amount of federal income tax withheld.
Step-by-step explanation:
A W-4 form must be filled out when someone is hired for a job to determine how much income tax will be withheld. The options given are W-9, W-2, W-4, and 1040.
The correct choice for the blank is the W-4 form. This form is used by employees to indicate their tax situation to the employer, such as the number of allowances they are claiming, which directly affects the amount of federal income tax withholding from their paycheck.
This form is important for ensuring that the right amount of tax is paid throughout the year and can prevent underpayment or overpayment of taxes.
It differs from other forms such as the W-2 form, which reports wages earned and taxes withheld for the year to the employee and the IRS, and the 1040 form, which is used to file an annual income tax return.
The W-9 form, on the other hand, is used to provide taxpayer identification information, usually in situations where income is not earned as an employee, such as an independent contractor.
Knowing which form to use is important for both compliance with tax regulations and proper financial planning. The W-4 is specifically designed for new employees, or when an employee's financial situation changes, to provide employers with the information needed to withhold the correct amount of tax.