Know about form W-4
A W-4 form is one that you are required to fill once you get a job. The government of the United States made it mandatory to file form W-4, once you are employed. It gives your employee an idea of how much to withhold from your salary for federal income taxes. But what exactly is the W-4? In this article, you will get to know all about the W-4 form.
Form W-4 is basically an Internal Revenue Services tax that represents a withholding certificate of any employee. It provides the necessary information to your employer about how much of your salary to withhold. The money withheld is for federal income taxes. You are required to fill out a Form W-4 every time you get a new job. Even if you don’t change jobs, but go through a significant financial difference in your life, you still need to fill out a new form. This includes getting a raise in your salary, etc. The Internal Revenue Services (IRS) recommends filling a new form once a year.
Discussing the W-4 form
On payday every month, your employer is supposed to withhold a certain amount of your money from your paycheck. This money goes to the Federal Income taxes and other taxes, for example, the FICA taxes. This prevents you from having to pay a huge amount of tax sum at once. That’s why every employer is required to withhold money for Federal Income taxes. This money is then sent to the Internal Revenue Services by the employer as taxes. Your monthly salary and the information on your W-4 determined how much money your employer will withhold for the taxes. The form applies to everyone, including retired personnel. Employees without an employer are required to withhold their own salary for federal income taxes. These may include self-employed workers, independent contractors, small business owners, etc. In such a case, the employee is required to withhold money from their salary by calculating the estimated taxes.
Personal Information :
The W-4 is actually quite short, despite being a four-page packet. The form has five steps. Step one includes filling in your personal information. Personal information includes name, Social Security number, address, and filing status (single, married or married filing separately). The other steps, that is step two to four, are optional and do not apply to everyone. It may apply to you if you have multiple jobs or a working spouse. It is also applicable to people who are claiming dependents and those who are listing other adjustments. Employers then required to enter their name, address, and employer identification number (EIN). They are also supposed to fill the date on which the employee joins work. This makes up the first page of the W-4 form. The remaining pages comprise the instructions and multiple job worksheets.
Conclusion :
If you are an employer, you need to make sure all the employees under you fill out a W-4. Then you need to determine how much money to withhold from their salary. The withheld money should be sent to the IRS.
