How to Add or Update an Employee’s W-4 in Beyond
In 2020, the IRS updated Form W-4, the Employee’s Withholding Certificate, which helps employers determine the correct amount of federal income tax to withhold from each paycheck. Whenever an employee’s filing status changes (for example, after getting married), a new W-4 should be completed, even if the change happens mid-year. Here’s how you can manage that in Beyond.
Factors That Affect Federal Tax Withholding
You’ll need:
- A completed Form W-4 from the employee
- IRS Publication 501
- IRS Publication 15-T
Getting Started
When you add a new employee in Beyond, the current version of the W-4 will automatically appear.
Important: For new hires, do not use the legacy version of Form W-4.
Filing Status
You can find the employee’s filing status in Step 1, Box (c) of the W-4.
“Only 2 Jobs” Option
Select True only if the employee has more than one job. If your company is their only employer, select False.
Dependents Amount
Employees may claim:
- Children under 17 years old
- Any individual (related or not) who depends on them financially
To confirm eligibility for dependents, refer to IRS Publication 501. Add the amounts from Step 3 of the W-4 and enter the total under Dependents Amount. If no dependents are claimed, leave this field empty.
Other Income
If the employee earns money from another source and no taxes are withheld from it, they can request that you withhold extra funds from their paycheck to cover potential tax liability. This field should not be used for payments issued by your company.
Deductions
If the employee itemizes deductions, record them here. If they’re taking the standard deduction, leave the field blank.
Extra Withholding
An employee may request a set additional amount to be withheld from each paycheck – either to prepare for an expected tax change or to receive a larger refund. This differs from Other Income because the employee chooses the exact amount to be withheld.
Need Help?
If you still have any questions, please don’t hesitate to reach out. Our team will be happy to provide answers and assist you in any way we can.