What is a W-4 form?
A W-4 form is an IRS tax form employees fill out to tell their employer how much money to withhold from each paycheck. The employer will withhold the noted amount from each paycheck to pay the IRS on the employee's behalf. The amount withheld from each paycheck will go towards the employee's federal income tax. It's important for employees to understand the W-4 form to ensure they don't pay too much or too little in federal income tax.
When do employees need to fill out a W-4 form?
All employees should submit a new W-4 every year to ensure their information is correct and their withholdings are up-to-date. New employees should fill out a W-4 form when they begin working for your company. Employees should fill out a new W-4 form if their financial situation has recently changed or if they've recently had a baby, bought a home, received a promotion or salary adjustment, got married, or gone through a divorce.