w-4 form 2021

How to Complete the New Form W-4

The W-4 Form is an IRS form that you complete to let your employer know how much money to withhold from your paycheck for federal taxes . Accurately completing your W-4 can help you prevent having a big balance due at tax time.

Form W-4 tells you, as the employer, the employee’s filing status, multiple jobs adjustments, amount of credits, amount of other income, amount of deductions, and any additional amount to withhold from each paycheck to use to compute the amount of federal income tax to deduct and withhold from the employee’s pay.

The difference between a W-2 and W-4 is that the W-4 tells employers how much tax to withhold from an employee’s paycheck; the W-2 reports how much an employer paid an employee and how much tax it withheld during the year. Both are required IRS tax forms.