What is the purpose of consulting IRS Publication Circular E?

Consulting IRS Publication Circular E serves to provide guidance on federal tax withholding rules for employees. It outlines the necessary information for employers related to employee classification, tax rates, and specific instructions on how to calculate and withhold the correct amounts from payroll. This resource helps businesses ensure they are complying with federal tax laws, which is crucial for maintaining proper financial practices and avoiding penalties.

The other options relate to different areas of contractor management. Building codes pertain to construction regulation, state regulations involve compliance at a legal or governmental level, and insurance policies require a distinct understanding that is not covered in IRS documents. Therefore, focusing on employee tax withholding aligns directly with the purpose of IRS Publication Circular E, making it the correct choice.