FORMS

Form W-4, also known as the Employee's Withholding Certificate, is an Internal Revenue Service (IRS) tax form that employees in the United States fill out for their employers to determine the correct amount of federal income tax to withhold from the employee's paycheck.

Key details on Form W-4:

• Indicates marital status, number of allowances, any additional amount to be withheld, and certification that information provided is correct

• Completed upon hiring to establish federal income tax withholding, also whenever personal or financial situation changes substantially

• Employers use info provided on the W-4 to determine the employee’s tax withholding rate and amount withheld each pay period

• A higher number of allowances claimed results in less tax being withheld per pay period; lower allowances means more tax withheld

• Employees must submit new W-4 when certain life events occur like change in marital status or child birth

• Accurate completion essential for paying proper taxes and avoiding tax liability/penalties of improperly withheld income tax

The W-4 provides critical information to employers to ensure federal income tax is withheld accurately and according to each employee's personal tax situation and number of claimed exemptions. Any changes must be reported promptly by submitting an updated form.