Utah Contractor Practice Exam

When should employees return their completed W-4 form according to employment standards?

1. At any time during the year

2. Before they start work

3. Immediately upon starting work

4. By the end of the calendar year

The correct answer is: Immediately upon starting work

Employees should return their completed W-4 form immediately upon starting work because this document is crucial for determining the amount of federal income tax that will be withheld from their paychecks. Completing this form right away ensures that the employer has the necessary information to withhold the correct amount of taxes from the outset. This is an important step in the employment process, as it helps workers avoid potential tax liabilities later in the year. Submitting the W-4 after this point can lead to inaccuracies in withholding. If employees delay returning the form, they may experience incorrect tax withholdings, which can result in underpayment or overpayment of taxes. Therefore, prompt submission of the W-4 upon commencing employment is not only a best practice but also a critical requirement for accurate payroll processing.