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Menu Leave a ReplyWhen you hire new employees, you need to collect information to verify employment eligibility and run payroll. Federal Forms W-4 and I-9 are just the beginning when it comes to new employee forms. You may also need to collect state-specific forms, including your state’s W-4. What is the state W-4 form? What is a state W-4 form?State W-4s work similarly to the federal Form W-4, Employee’s Withholding Certificate. Employers use state W-4s to determine state income tax withholding for employees. States either use their own version of the state W-4 or the federal Form W-4. Unless your employees work in a state with no state income tax, they generally must fill out the W-4 state tax form before starting a new job. Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming do not have state income tax. Most other states require employees to complete the W-4 for state taxes, unless the state imposes a flat income tax rate. Your employees’ information on the W-4 state form determines how much you will withhold from their wages for state income tax. Many states use state withholding allowances to determine withholding. Employees can claim state tax allowances for themselves, a spouse, or child. The more state tax withholding allowances an employee claims on their state W-4, the less you withhold. Most states update their W-4 forms annually. Visit your state’s website to verify you are using the most up-to-date state W-4 form. After collecting your employees’ completed state W-4 forms, use them to determine how much to withhold when running payroll. Store employees’ state tax withholding forms in your records. Federal vs. state Forms W-4As an employer, you may need to withhold three types of income tax from employee wages, including federal, state, and local income taxes. You must distribute both federal and state Forms W-4 to employees so you can accurately run payroll. But, what’s the difference? Employees use the federal Form W-4 for federal income tax withholding. Employees use their state’s version of Form W-4 for state income tax withholding. Some states let employers calculate an employee’s state income tax withholding based on the information they input on the federal Form W-4. Updated federal W-4In 2020, the IRS released a new W-4 form that eliminated withholding allowances. However, many states still use withholding allowances for their state income tax structure. Because of this change, some states that previously used the federal form for state income tax withholding have created their own version of Form W-4 (e.g., Idaho). States that continue to use the federal version made changes to their state income tax structure. Here’s the bottom line: The 2020 version of the federal W-4 form may have done away with withholding allowances for federal income tax withholding. But, many states continue to use withholding allowances for state income tax withholding. Here are the states that have created their own version of the state W-4 form rather than using the IRS’s updated version:
These are the states that will continue to use the federal W-4 form:
State tax withholding forms chartYou cannot accurately run payroll until you know how much to withhold for state income tax. Use this chart to learn which state W-4 form you need to distribute to and collect from new hires.
*Some states may require additional forms for special circumstances. Check with your state for more information. Psst: W-4 forms aren’t the only ones you need to know about. Download our FREE guide to get the scoop on other employment forms to collect from employees (+ the employer forms you need to file!). Updating state tax withholding formsYour employees may want to adjust their withholding on their state W-4 after completing the original form. For example, an employee may get married or divorced, add or remove a dependent, or go through another life event that affects their withholding. Employees can update their state tax withholding forms throughout the year. Be sure to collect their updated state tax forms for your records and adjust your payroll. State withholding and Form W-2Each year, you are responsible for reporting how much you paid employees and withheld from their wages for income and payroll taxes when filling out W-2, Wage and Tax Statement. Boxes 15-17 on Form W-2 deal with your state. Report how much you withheld and remitted for state income tax in Box 17. Again, the amount you withheld for the year is typically based on the employee’s state W-4. If your employees work in a state with state income tax, you need to collect state W-4 forms and store them in your records. Keep a copy in the cloud with Patriot’s online HR software. The HR software integrates with our online payroll. Try both for free today! This article has been updated from its original publication date of December 31, 2018. This is not intended as legal advice; for more information, please click here. What is withholding exemption certificate?Form W-4 Employee's Withholding Allowance Certificate
Complete Form W-4, Employee's Withholding Allowance Certificate, so that your employer can withhold the correct federal income tax from your pay. Nonresident alien individuals are subject to special instructions for completing the Form W-4.
What is a employee's withholding Certificate?What Is a W-4? Form W4, "Employee's Withholding Certificate," is filled out by an employee to instruct the employer how much to withhold from your paycheck. The IRS requires that individuals pay income taxes gradually throughout the year.
How do I fill out an employee's withholding certificate?How to Complete the New Form W-4. Step 1: Provide your information. Provide your name, address, filing status, and SSN. ... . Step 2: Indicate multiple jobs or a working spouse. ... . Step 3: Add dependents. ... . Step 4: Add other adjustments. ... . Step 5: Sign and date Form W-4.. Should I claim exemption from withholding?Who Should Be Filing Exempt on Taxes? As noted above, you can claim an exemption from federal withholdings if you expect a refund of all federal income tax withheld because you expect to have no tax liability and had no tax liability in the previous tax year.
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Employees withholding exemption and county status certificate
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