![]() ![]() Why is form W4 important for employees and for employers?įrom an employee perspective, Form W-4 allows your team to control the amount of income tax that’s withheld from their paychecks. The employer then uses that to determine the tax withholding for that employee and deducts the appropriate amount each pay period.Īll new employees have to fill out a W4 form when they’re hired-and if they want to change their withholdings, they can resubmit a new W4 form at any time. The employee determines how much they want withheld from their earnings, fills out the form accordingly, and gives it back to the employer. Here’s how it works: an employer gives Form W-4 to the employee. The W-4 Employee’s Withholding Certificate is a tax form (available on irs.gov) that allows employees to elect how much income tax is withheld from their paychecks. Let’s take a deep dive into the W-4 form: what it is, why it’s important, and how your employees can fill it out accurately: What is a W-4 form? But Form W-4 went through some changes back in 2020-and your employees may have questions about how to fill it out. But how do you know how much to withhold?įorm W-4 gives you the information you need to ensure accurate withholding for each of your employees. ![]() As an employer, you need to withhold income taxes from your employee’s earnings each pay period. ![]()
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