A W-4 form is an IRS-required document that new hires must complete so their employer knows how much federal income tax to withhold from their paycheck. It plays a key role in helping employees avoid underpayment or overpayment of taxes throughout the year.
Understanding the W-4 Form
Updated most recently in 2020, the current version of the W-4 features a streamlined, five-step approach to calculating withholding amounts. Employees should complete this form not only when they start a new job, but also whenever there’s a major shift in their personal or financial circumstances, like getting married, having a child, or picking up a second job.
Beyond supports employers by simplifying the onboarding process, including accurate W-4 collection and updates.