Form W-4 provides information that helps an employer determine how much tax should be withheld from an employee’s paycheck. An employee will initially complete form W-4 when he or she begins employment. If anything about the employee’s tax situation changes from when the employee first completed form W-4 (e.g., changing marital status, having a child, etc.), those changes might impact the employee’s tax liability. When this is the case, the employee should complete a new W-4.

Claiming more exemptions generally results in less tax withholding. If an employee does not have enough tax withheld, the employee may risk owing additional penalties. If the employee believes he or she will owe more tax during a given year, the employee may use form W-4 to decrease the number of claimed exemptions or request an additional amount of withholding. For additional help, please see http://www.fms.indiana.edu/tax/withhold.pdf.

Document Information:
Filename: kb-283
Date: 07/02/2008
User: ptaylor