Filling Out a W-4 Form
The W-4 Form is filled out by an employee so an employer can withhold the correct portion of federal income tax an employee’s pay. At the beginning of a new job, employees are required complete a W-4 form and give t to the employer so that the employer can calculate how much tax to withhold.
An employer needs to collect W-4 forms from the employees in order to process an employee's payroll check. A new employee should be provided a W-4 form to fill out on their first day of employment. If a payroll preparer has not received a W-4 form from an employer, a payroll check cannot be issued to the employee.
The Internal Revenue Service requires all employers and businesses to collect W-4 forms from their employees. The information given on the W-4 form is used to calculate payroll taxes. The W-4 form includes information such as employee name, Social Security number, marital status address, and the total allowances claimed for tax withholding.
The W-4 form has five sections
· Instructions for filling out the W-4 form
· A personal allowances worksheet
· Deductions and adjustments worksheet
· Two-earners/multiple jobs worksheet
· The W-4 form
For an employee who are is exempt from any withholdings, he or she must complete personal allowance worksheet in order to adjust withholdings based on certain credits, itemized deductions, income adjustments, multiple jobs, or two-earner situations.
For an employee that exempt from withholding, he or she must only complete lines 1,2,3,4, and 7 as well as sign the W-4 form in order to validate it.
An employee is not eligible to be exempt from withholdings if:
· The employee is claimed as a dependent on another person’s tax return
· The income exceeds $950 and includes over $300 of unearned income or the gross income is more than $9,300 for a single $12,010 for a household head, $7,960 if married filing separately, or $16,750 if married filing jointly.
For a nonresident alien who is filling out the W-4 form, there are certain special instructions required.
· Regardless of marital status, a nonresident alien must check “single” single marital status
· Unless the nonresident alien is a resident of Mexico, Korea, Canada, or a U.S. national, the nonresident alien should put only one withholding allowance on line 5.
· Line 7 should not be claimed as exempt
· Line 6 of the W-4 form should have NRA or nonresident alien written.
A new W-4 form must be filed anytime an employee’s tax situation changes and the employee chooses to have more or less tax withheld.