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

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The employer uses Form W-4 to determine the employee's tax withholding amount. This form is filled out by the employee and indicates their marital status, number of dependents, and any additional tax withholdings or exemptions. Form W-2 is used by the employer to report annual wages and taxes withheld to the employee and the IRS. Form W-3 is a transmittal form used to transmit Form W-2 to the Social Security Administration. Form 941 is a quarterly tax return filed by employers to report wages paid and taxes withheld.

An Employer Calculates the Amount of Income Tax Withheld from Salary