•For the purposes of this document, we will refer to the federal form as Federal W-4.

•For the state form, we will refer to the state form as State W-4.

•Your state may use a different form designation/number.

•If it not the employer's responsibility to assist employees with the preparation of W-4 forms.

•If an employee needs assistance, the employer should suggest the employee consult with their tax preparer.

•As an employer, you MUST withhold based on instructions the employee has given you via the last valid W-4.

•The employee has ultimate say in the withholding settings, via their choices on the W-4 forms.

•If there is no valid W-4 form available, you must withhold as single, with no allowances.

•Given the differences between state and federal settings and options, it is STRONGLY suggested all employers collect a separate federal and state form.

•Even when your state allows the use of the same settings as the federal form

•Even when your state uses a copy of the federal form.

•If your state does not have a state specific W-4 form, use a copy of the federal form, writing 'STATE USE ONLY' across the top of the form.

Federal Withholding Allowance Certificate (Form W-4)

•Status

•The status the employee selects may or may not reflect the employee's actual marital status.

•Exempt

•If the employee has provided a valid Federal W-4 form, for the tax year indicated on the form, with 'Exempt' written in the proper box (and also nothing in the other numerical boxes, such as additional withholding), check the Exempt box.

•Employees claiming exempt status MUST provide a new Federal W-4 form each year.

•If a new Federal W-4 form is not received by the deadline indicated in the W-4 form's instructions, you MUST change the employee to Single.

•Single or Married filing separately

•Select this status for employees who have indicated this option, for employees who have not provided a valid Federal W-4 form, and for employees who claimed exempt for the prior year and have not provided a new Federal W-4 form for the current year.

•Married filing jointly

•Select this status only if the employee has provided a valid Federal W-4 form with the Married filing jointly box checked.

•Head of household

•Select this status only if the employee has provided a valid Federal W-4 form with the Head of household box checked.

•Two Jobs, Higher Withholding

•Check this box only if the employee has provided a valid (2020 or later) Federal W-4 form with Step 2, Multiple Jobs box checked.

•This item does not affect paychecks dated before 2020.

•Selecting this box causes the employee's withholding to be calculated with zero allowances, and a higher withholding calculation.

•Dependent Credit

•Enter the amount from Federal W-4 form (2020 or later)

•This item does not affect paychecks dated before 2020.

•This amount is entered here as the annual amount.

•When creating and printing paychecks, this amount is shown as the amount per paycheck (annual amount / pay frequency).

•Other Income

•Enter the amount from Federal W-4 form (2020 or later)

•This item does not affect paychecks dated before 2020.

•This amount is entered here as the annual amount.

•When creating and printing paychecks, this amount is shown as the amount per paycheck (annual amount / pay frequency).

•Deductions

•Enter the amount from Federal W-4 form (2020 or later)

•This item does not affect paychecks dated before 2020.

•This amount is entered here as the annual amount.

•When creating and printing paychecks, this amount is shown as the amount per paycheck (annual amount / pay frequency).

•Additional FWH Per Check

•An amount the employee has indicated to add to the calculated amount on a per check basis.

•If the employee enters an amount for this item, and also claims 'Exempt', the form is invalid and should be ignored and returned to the employee.

State Information

•The State settings are similar to the Federal W-4 settings.

•For state specific suggestions, refer to the State Tax Calculation topic, and to your state withholding instructions/guide book.

•Items not specific to the employee's selected tax state calculation are ignored during the calculations.