how to fill out a w4 for dummies

This is where you’ll input your full name, address, and Social Security number. To be most accurate, make sure this matches the information that you’ve provided your human resources department so that there’s no filing confusion. You can download the W-4 form and instructions directly from the IRS website. If you have a question, check this list of frequently asked questions about the form and information on how to complete it.

If you want to learn about more forms employers are responsible for filling out or collecting, check out our payroll forms article. If you’d prefer to not have to collect and file W-4 forms for all of your employees manually, consider using a full-service payroll software like Gusto. Please note that if an employee has joined the organization mid-year and was further not employed at any other place during the previous half of the year, it’s considered a tax-saving opportunity. If an employee has worked for less than 245 days in a year, one written application is all that is needed by the employer to calculate the tax withholding using the part-year method.

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If these don’t apply to you, you go can go directly to Step 5. The W-4 form is completed by an employee so that the employer can withhold the correct amount of federal income tax from your pay. What if you’re married, filing jointly and completing your W-4 form? If you file as Married Filing Jointly — and you both earn around the same amount, there’s a box you can check to indicate that (it’s part of line 2c). If you want help figuring out your withholding amount, the IRS offers an online Tax Withholding Estimator. The withholding calculator can also give you an idea of whether you’ll owe or get a refund based on the amount you’re currently having withheld and the amount of tax you owe for the year.

  • This is applicable in case the employees have any dependents.
  • If you have a question, check this list of frequently asked questions about the form and information on how to complete it.
  • Instead, the process has become simpler which enables the employee to assess the withholding amount basis the financial situation.
  • Yes, an employee can submit a new W-4 form at any time during the year to adjust their withholdings.
  • A W-2 is a form that your employer sends you during tax season and it tells you how much tax your employer withheld during the past tax year.

If you’d prefer to have it done for you, consider using a full-service payroll software like Gusto. Its self-service employee onboarding platform will prompt your employees to fill out a digital version of the W-4 form and will file it for you automatically. As an employer, your only responsibilities are ensuring an employee turns in a Form W-4 correctly and withholding taxes according to the information they supply.

Step 4: Refine your withholdings

The final insurance policy premium for any policy is determined by the underwriting insurance company following application. If your employer lets you complete your W-4 digitally, you will probably be able to use an electronic signature instead of having to print and sign. If you need further assistance How to do bookkeeping for a nonprofit for discerning which allowances you should claim on your W-4, try this IRS withholding calculator. When you have income from two jobs, you only need to complete one W-4 form. There are worksheets in the Form W-4 instructions to help you estimate certain tax deductions you might have coming.

You’re likely better off having the money that’s rightfully yours in a savings account or other fund than with the IRS, so you can access that money on your own terms. If you already have a W-4 on file for your existing job, you do not need to change anything yet. However, if you started a new job recently, plan to make any personal life status adjustments, or you want to increase or decrease your amount withheld, you will need to fill out the new W-4 form.

How to Fill Out the W-4 Form

The only parts that an employee is required to fill out are 1 and 5. Part 1 provides contact information and filing status, and Part 5 is the signature block. If employees only complete these two sections, the IRS will direct you to withhold money based on their filing’s standard deduction without any other adjustments. The Tax Cuts and Jobs Act drastically changed the W-4 form in 2020.

how to fill out a w4 for dummies