A payee statement is a required tax information statement that indicates the amount paid to a payee, including various types of income and withholding details.
Exemptions from withholding for the taxpayer, spouse, and dependents, used in calculating the amount of income tax to be withheld from periodic wage payments.
The underpayment penalty, also known as the estimated tax penalty, is levied on taxpayers who do not withhold enough tax or fail to make sufficient estimated tax payments throughout the year.
The W-4 Form is used by new employees and existing employees who wish to change the number of personal exemptions claimed for tax withholding purposes. This form directly impacts the amount of federal income tax withheld from an employee's paycheck.
