What is a W-4 form?
Form W-4 is an IRS form completed by employees that tells their employers how much money to withhold from their paycheck for federal taxes.
On their W-4 form, employees claim allowances for themselves, their spouse, and each of their dependents. The more allowances they claim, the less money the employer will withhold for taxes. Employees may also opt to have additional funds withheld, or claim exemption.
Employers should collect a W-4 form when a new hire starts work. Employees might opt to update their W-4 if they experience a major life event, such as a marriage.
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