Oregon Construction Contractors (CCB) Practice Test

What form is used for documenting an employee's eligibility to work?

1. W-2

2. I-9

3. 1099

4. W-4

The correct answer is: I-9

The I-9 form is crucial for documenting an employee's eligibility to work in the United States. This federal document requires employers to verify the identity and employment authorization of individuals they hire, ensuring that they are legally allowed to work. Upon hiring, employers must complete the I-9 form within three days, which involves the employee presenting valid identification. This process is vital for compliance with immigration regulations and helps prevent unauthorized employment. The correct use of the I-9 form thus safeguards employers against potential legal issues related to hiring undocumented workers. In contrast, the W-2 form is used to report an employee's annual wages and the taxes withheld from their pay. The 1099 form, on the other hand, is used to report income earned by independent contractors, not employees. Lastly, the W-4 form is utilized by employees to indicate their tax withholding preferences to their employer, which helps determine the amount of federal income tax to withhold from their paychecks. Each of these forms serves a different purpose within the employment and tax documentation processes, but only the I-9 is specifically designed to confirm eligibility to work.