CSLB Contractor's Law & Business Practice Exam

What federal forms are provided to a newly hired employee?

1. W-2 and 1099

2. W-4 and I-9

3. W-3 and 1040

4. W-5 and 945

The correct answer is: W-4 and I-9

The correct choice is the W-4 and I-9 forms, which are crucial for both employers and employees when a new worker is hired. The W-4 form is the Employee’s Withholding Certificate, and it is used by employers to determine the amount of federal income tax to withhold from an employee's paycheck. When a new employee completes a W-4, they indicate their filing status and any allowances they are claiming, which affects their tax withholding. This form is essential for ensuring that the correct amount of taxes are withheld throughout the year. The I-9 form, on the other hand, is the Employment Eligibility Verification form. It is required for all employees hired in the United States to verify their identity and eligibility to work in the country. The I-9 requires the employee to present documentation that proves their identity and their legal right to work. This form is critical for compliance with immigration laws and regulations. In summary, the W-4 helps determine tax withholding, while the I-9 ensures that the employee is authorized to work, making these forms essential for any newly hired employee.