Terms Flashcards
(7 cards)
What is Form W-4?
Form W-4, also known as the Employee’s Withholding Allowance Certificate, is filled out by an employee. It indicates how much tax to withhold throughout the year based on the allowances claimed.
How does the number of allowances on Form W-4 affect tax withholding?
The more allowances claimed, the lower the amount of federal taxes withheld from each paycheck.
What is Form W-2?
Form W-2 is the Wage and Tax Statement, which shows the income and taxes withheld from an employee’s pay for the year.
Who fills out Form W-2 and when must it be provided to employees?
Form W-2 is filled out by the employer and must be given to each employee by January 31.
What is Form W-9?
Form W-9 is a Request for Taxpayer Identification Number and Certification, capturing information of non-employees doing work for a business.
Who are considered non-employees in the context of Form W-9?
Non-employees are also called ‘independent contractors.’
What is Form 1099-MISC?
Form 1099-MISC is issued by a business to a contractor, similar to a W-2 issued to an employee.
