[US] Frequently asked questions about Form W-4

Access the Form W-4 from the IRS website.

What is a Form W-4?

Form W-4 (Employee’s Withholding Certificate) is an IRS form that employees complete to show how much federal income tax to withhold from each paycheck. The information on Form W-4 ensures that their employee tax withholding is accurate, to avoid overpaying or underpaying federal taxes throughout the year.

Form W-4 includes:

  • Personal information
  • Multiple jobs or a working spouse
  • Dependent claims
  • Other income and deductions
  • Additional withholding

What should I do in Wave once my employee completes their W-4?

Once you have your employee’s completed Form W-4, you can enter their tax details in Wave. Learn how to add or edit employee tax details.

What if my employee doesn’t fill out Form W-4?

As employees are hired, employers are required to complete the employee’s tax profile during onboarding.  If an employee does not fill out Form W-4, their employee tax profile will be incomplete. Incorrect details may lead to incorrect employee or employer tax remittances.

Why would I need to update my employee’s tax details?

Employees may need to update Form W-4 following life changes or employment shifts. Common reasons include:

  • Marriage or divorce: Marital status affects filing status and withholding.
  • Birth or adoption: New dependents may reduce tax liability.
  • Death of a spouse or dependent: Reduces dependent count and affects filing status.
  • Starting a new job or holding multiple jobs: Income changes require updated withholding.
  • Spouse starting or stopping work: Dual incomes must be considered when calculating withholding.