Each employee is required to furnish the employer with which of the following forms for payroll and tax withholding purposes?

• A. Form 1099-MISC
• B. Form W-2
• C. Form 1040
• D. Form W-4

Answer: (D)

Verified step by step guidance

1. Understand the purpose of each form mentioned in the problem: Form 1099-MISC is used to report income for independent contractors, Form W-2 is used by employers to report wages paid to employees and taxes withheld, Form 1040 is used by individuals to file their annual income tax return, and Form W-4 is used by employees to inform their employer of their tax withholding preferences.
2. Recognize that the question is asking about payroll and tax withholding purposes, which directly relates to the employee's responsibility to provide information about how much tax should be withheld from their paycheck.
3. Identify that Form W-4 is specifically designed for employees to communicate their tax withholding preferences to their employer, making it the correct form for this purpose.
4. Note that Form W-2 is provided by the employer to the employee at the end of the year to summarize wages and tax withholdings, but it is not furnished by the employee to the employer for withholding purposes.
5. Conclude that Form W-4 is the correct form employees must furnish to their employer for payroll and tax withholding purposes, as it directly impacts the calculation of tax deductions from their paycheck.