Federal Tax Withholding Troubleshooting
The W-4 form is a key part of payroll—it’s how employees indicate how much federal income tax should be withheld from their pay. Filling out a W4 form incorrectly can result in substantial tax obligations when an employee files their annual return, so we’re here to help keep you and your employees compliant!
Because the W-4 is a personal tax document that reflects each employee’s unique financial situation, employers are generally encouraged to provide only limited guidance. That said, there are excellent resources available to help employees feel confident when completing their form. For example, BerniePortal’s HR Blog offers a helpful guide, How to Fill Out Form W-4 in 2024, and the video at the top of this article walks through both completing the form and using a tax calculator to understand its impact.
Third-party Tax Calculators can also be a great resource for Employees looking to better understand how their W4 will affect their Federal tax withholdings. We have some directions below, but THIS video will help you walk through how to utilize it.
- IRS provides a Tax Withholding Estimator, which can be used to estimate your federal tax withholding based on your W4 and personal finances
- In order to best utilize this tool, employees will need their paystubs, information about other sources of income, and their most recent tax return handy
- PayCity provides a Tax Withholding Calculator that Employees can utilize to calculate their Take-Home Pay based on how their W4 has been completed
- In order to best utilize this tool, employees will need a copy of their completed W4 and a recent check stub.
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