BUISENESS MANAGEMENT
TAXES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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To prevent the government from taxing us
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To let our employer know how much income tax to withhold (set aside) from each paycheck
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To inform the IRS how much money we made this year
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To request an extension on paying taxes
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Detailed explanation-1: -Maryland Form MW507 is the state’s Withholding Exemption Certificate and must be completed by all residents or employees in Maryland so your employer can withhold the correct amount from your wages. Form MW507 is the equivalent of the W-4 that all American workers complete for federal withholding.
Detailed explanation-2: -Complete Form W-4 so that your employer can withhold the correct federal income tax from your pay. Consider completing a new Form W-4 each year and when your personal or financial situation changes.
Detailed explanation-3: -Form W-4 tells you, as the employer, the employee’s filing status, multiple jobs adjustments, amount of credits, amount of other income, amount of deductions, and any additional amount to withhold from each paycheck to use to compute the amount of federal income tax to deduct and withhold from the employee’s pay.
Detailed explanation-4: -Step 5: Sign and date your W-4. Once completed, give the signed form to your employer’s human resources or payroll team. You may also be able to fill it out online through your employer’s payroll system.