9 - Form W-4

What are employer's responsibilities when it comes to Form W-4?

1. Tax Withholding 2. Lock-in letters 3. Form W-4 recordkeeping

When it comes to withholding allowances, what is the general rule?

As an employee claims more exemptions, employers will withhold less federal income tax from their wages. As an employee claims fewer exemptions, more federal income taxes will be withheld from their wages.

Can employees change their withholding allowances?

Employees can change their withholding allowances at any time.

What is a W-4 form used for?

Employees will use the worksheets and tables to determine their allowances, any additional withholding amount, and state their marital status.

What is a W-4 form?

Form W-4, Employee's Withholding Allowance Certificate, is an IRS form that new employees must complete when they start at a business.

What determines how much should employers withhold from employee wages?

How much employers withhold depends on how much the employee earned, how many withholding allowances the employee claimed, how often the employee is paid, their marital status, and if they request additional withholding.

How does an employer claim an exemption?

If an employee is exempt from federal income taxes, they will need to claim exemption from withholding of federal income tax by writing "Exempt" on Line 7 of Form W-4.

What does the number of withholding allowances an employee claims determine?

It helps to determine how much federal income tax to withhold from their wages.

Why would an employee want to change their withholding allowances?

It may depend on financial or family status changes such as: - Marriage or divorce - Birth or adoption of a child - Employee starts a second job - Spouse has an employment change - Decides to itemize deductions - Too much or too little is being withheld

Do withholding allowances expire?

No, but an exemption from with allowances expires. Employees claiming exempt on W-4 must give employers a new Form W-4 every year by the deadline for exemptions, February 15th.

What should an employee do if they want to change the number of withholding allowances?

They should submit a new Form W-4 to the employer.

Can employers keep a copy of an employee's Form W-4 in Patriot's software?

Yes! They can keep a copy of it in the cloud with Patriot's HR Software. They can share the form with the employee so they can renew it.

Can employees be exempt from federal tax withholding? Explain.

Yes. To be exempt, an employee must meet all exemptions requirements and give a Form W-4 stating they are exempt. In order to claim the Form W-4 status, the employee must meet the Form W-4 deadline for exemptions each year.

What does the employer's responsibilities with Form W-4 recordkeeping entail?

You do not have to send Form W-4 to the IRS unless it requests to see the form. You must keep a copy on file, though.