Fundamental Payroll Certification (FPC) Practice Exam

Which statement describes the purpose of the W-4S form?

1. Request sick pay documentation

2. Request withholding for sick pay

3. Document tax liability

4. Summarize employee hours worked

The correct answer is: Request withholding for sick pay

The W-4S form is specifically designed for employees who receive sick pay. Its primary purpose is to allow eligible employees to request that federal income tax be withheld from their sick pay. By completing this form, the employee provides the necessary information to their employer or the sick pay provider, ensuring that appropriate federal income tax withholding occurs, and helping to avoid larger tax liabilities when filing their annual tax returns. This form is particularly significant in instances where an employee may be receiving sick pay from a third-party payer, such as an insurance company, as it provides a mechanism for managing tax withholding in these situations. Thus, the focus of the W-4S being on the withholding aspect from sick pay clearly aligns with the correct choice presented, emphasizing its role in the payroll and tax withholding process.