CSLB Contractor's Law & Business Practice Exam

What is required from employees every time they are hired regarding federal forms?

1. Only the W-4 form

2. Both W-4 and I-9 forms

3. Only the I-9 form

4. No federal forms are needed

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

When hiring employees, certain federal forms are mandated to ensure compliance with tax and immigration laws. Specifically, both the W-4 and I-9 forms are required. The W-4 form is crucial as it informs the employer about the employee's tax withholding preferences. This allows the employer to calculate the appropriate amount of federal income tax to withhold from the employee's paycheck, which is essential for ensuring that employees pay the correct amount of taxes. The I-9 form is equally important as it verifies the employee's identity and eligibility to work in the United States. Employers must ensure that each employee completes this form within three days of hiring to confirm they are legally allowed to work in the country. This requirement helps prevent illegal employment and uphold immigration laws. Requiring both forms reflects the need for employers to handle withholding taxes responsibly while also ensuring that they comply with immigration regulations.