What action is required by the employer when an employee submits their W-4 form?

When an employee submits their W-4 form, the employer must utilize it to determine the appropriate amount of federal income tax to withhold from the employee's paycheck. The W-4 form provides critical information regarding the employee’s filing status, number of allowances, and any additional withholding requests. This information directly influences the calculations the employer needs to make in ensuring compliance with federal tax laws.

Employers bear the responsibility of accurately interpreting the data provided on the W-4 to guarantee that the correct withholding amount is deducted every pay period. This ensures that employees do not face under-withholding issues that could lead to tax liabilities at the end of the year, or over-withholding, which could affect their cash flow during the year.

In contrast to the correct action, filing the W-4 with the IRS directly is not required and is not standard practice, as the form is kept on file by the employer for record-keeping and to make tax withholding calculations. Returning it for corrections or simply storing it securely without action does not meet the employer's obligations of managing tax withholding responsibly.