FAQs: Form W-4

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What is Form W4? (back to top)

Form W4 is required for each employee to specify the number of allowances to determine the amount of payroll tax withholding from each paycheck. The higher the number of allowances, the less tax is withheld. However, this does not change the actual tax obligations. The numbers are reconciled at the end of the year with income tax returns (1040s).

Why do I need to file Form W4? (back to top)

Typically, W4 forms are kept by the company internally. There are no filing requirements. However, if an employee enters a 10 or higher number of allowances or an employee requests an exemption from payroll tax withholding, the W4 is required to be filed with the IRS.

When should I file the questionable W4s? (back to top)

These questionable W4s are filed together with the quarterly federal tax return form 941 at the end of the quarter. If you e-file form 941, we want to provide an option for you to file questionable W4s electronically as well.