Which form is specifically used to declare exemptions for payroll tax purposes?

The W-4 form is specifically designed for employees to inform their employer of their tax withholding preferences. When an employee fills out a W-4, they can indicate personal allowances and any additional amount they wish to withhold from their paycheck. This impacts how much federal income tax is withheld from their salary, thereby playing a crucial role in payroll tax calculations.

Using the W-4, employees can also claim exemptions from withholding if they meet certain criteria, such as having no tax liability in the previous year and expecting none in the current year. This is important for managing payroll taxes as it directs employers on how much tax to withhold, thus influencing the employee's take-home pay.

In contrast, the W-2 form reports the amount of wages paid and taxes withheld for the year, but it does not declare exemptions. The 1099 form is used for reporting income received as a non-employee (e.g., independent contractors) and does not pertain to payroll taxes in the same way. Schedule C is used for reporting income and expenses from self-employment, which also does not declare exemptions for payroll taxes.