What information is collected on Form W-4?

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Form W-4 is specifically designed for employees to indicate their tax withholding preferences to their employer. The primary purpose of this form is to provide the employer with the information needed to calculate federal income tax withholding from an employee's paychecks. When an employee fills out Form W-4, they specify their filing status, the number of dependents, and any additional amount they may wish to withhold, which directly influences how much federal tax is deducted from their earnings.

The other options do not fall under the scope of what is collected on the W-4. For example, job title and responsibilities are typically captured by the employer through other forms of documentation related to employment. Annual wage information is more relevant to tax reporting forms like the W-2. Details regarding the employee's insurance coverage are also documented separately and do not belong on the W-4. Thus, the focus of Form W-4 on tax withholding makes the selection of the correct answer clear.

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