Which Federal Form must new employees complete for federal tax purposes?

New employees must complete Form W-4 for federal tax purposes. This form is crucial as it helps the employer determine the appropriate amount of federal income tax to withhold from the employee's paycheck based on their individual tax situation. The W-4 requires the employee to provide information about their filing status, exemptions, and any additional amount they may want withheld. This ensures that the correct amount of tax is withheld throughout the year, helping to avoid underpayment or overpayment when tax season arrives.

The other forms mentioned serve different purposes: Form W-2 is issued by employers to report annual wages and the amount of taxes withheld for employees, while the 1040 is the individual income tax return form that people use to file their annual taxes. Form 1099 is used to report various types of income other than wages, salaries, and tips, typically applicable to independent contractors and freelancers rather than employees. Therefore, Form W-4 is specifically designed for new employees to meet federal tax obligations accurately.