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Under what circumstance is an employee required to complete a new IRS Form W-4?

  1. After a change in marital status

  2. After a change in address and phone number

  3. Only if fewer than 10 exemptions are claimed

  4. After a change in age

The correct answer is: After a change in marital status

An employee is required to complete a new IRS Form W-4 after a change in marital status because this change can significantly affect the amount of federal income tax that should be withheld from their paycheck. Changes in marital status, such as getting married or divorced, alter the employee's tax filing status, which in turn impacts how the IRS tables are applied to determine withholding allowances. In contrast, changes in address or phone number do not affect tax withholding calculations directly, and there is no requirement to submit a new W-4 for those updates. As for claiming fewer than 10 exemptions, this is not a stipulation requiring a new form; employees have the discretion to decide how many allowances they wish to claim based on their personal tax situations. Changes in age also do not necessitate a new W-4, as age alone does not change the filing status or withholding calculations.