An employer calculates the amount of income tax withheld from salary or wages based on the information an employee provides on the:

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Form W-4 is where an employee provides their withholding allowances, which then allows the employer to calculate the amount of income tax to withhold from the employee's paycheck. Form W-2 and Form W-3 report the employee's wages and taxes withheld, while Form 941 is used to report the employer's quarterly payroll taxes.

An Employer Calculates the Amount of Income Tax Withheld from Salary