Certified Payroll Professional Test 2025 – 400 Free Practice Questions to Pass the Exam

Form W-4P is specifically used for withholding tax from payments such as pensions, annuities, or any other periodic payments. It allows the payee to specify the amount they want to withhold for federal income tax purposes. This form is essential for ensuring that the correct amount of tax is withheld from the payment to avoid underpayment or overpayment.

Option A, requesting paid time off, is unrelated to Form W-4P. Option C, enrolling in pension plans, typically involves different forms specific to the pension plan. Option D, authorizing direct deposit, is also not the purpose of Form W-4P.