The W-4, Employee’s Withholding Allowance Certificate, is a form employees must complete so that employers can withhold the correct federal income tax. It’s important that it be filled out promptly and correctly. Here’s some quick tips on things to be aware of with the form.
1. Employees should complete a Form W-4 or provide the information electronically when they are hired.
2. The worksheet portion of the W-4 helps employees figure out how many allowances to claim.
3. The W-4 tells employers about withholding, allowances and exemption claims for each employee.
4. Employees provide their marital status and withholding allowance when they fill out the W-4.
5. If an employee does not complete the W-4, withhold as if the employee is single with no allowances.
6. Employees should provide a new W-4 if marital status, allowances or withholding preferences change.
7. The W-4 stays in effect until the employee provides a new one (with exception of exempt employees).
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