What is the purpose of the W-4 form?

The W-4 form is specifically designed to inform employers about how much federal income tax should be withheld from an employee's paycheck. When a new employee is hired, they complete the W-4 to communicate their tax situation to their employer, including personal details such as filing status and potential deductions. This information helps ensure that the appropriate amount of taxes is withheld, which is essential for meeting tax obligations and avoiding under or over-withholding during the tax year.

In contrast, the other options serve different functions. Reporting annual income taxes is typically done through forms like the 1040. The verification of employment eligibility is handled through forms like the I-9. Applying for a tax refund usually involves submitting tax returns and claiming credits or deductions through the tax forms rather than the W-4. Thus, the primary role of the W-4 is centered around tax withholding, making it essential for tax management in payroll processes.