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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An employer calculates the amount of income tax withheld from salary or wages based on the information an employee provides on Form W-4, which provides details on the employee's tax situation and exemptions. Form W-2 reports wages and taxes withheld to the employee and the IRS, Form W-3 is a summary of Form W-2 and Form 941 is a quarterly tax report for employers.

An Employer Calculates the Amount of Income Tax Withheld from Salary