Every employee is required to complete an Employee's Withholding Allowance Certificate (Form W-4) to determine their exemptions. Is this statement true or false?

The statement is true because every employee is indeed required to complete an Employee's Withholding Allowance Certificate, commonly referred to as Form W-4, when they start a new job. This form is crucial as it informs the employer of the employee's tax withholding preferences, which include the number of exemptions they are claiming. Based on the information provided on the W-4, the employer can calculate the appropriate amount of federal income tax to withhold from the employee's paycheck.

The requirement for filling out this form applies universally, regardless of state regulations. While some contexts might emphasize it for new employees specifically, it's essential for all employees to ensure accurate withholding based on their personal tax situations, particularly if there are changes to their circumstances that would affect their tax liabilities.