W-4 meaning: a W-4 is the IRS form, officially called the Employee’s Withholding Certificate, that you give your employer so they know how much federal income tax to withhold from each paycheck. You fill it out when you start a job and can update it any time your situation changes. You don’t send it to the IRS; your employer keeps it.
What does W-4 mean at work?
When you’re hired as an employee, HR or payroll will ask you to complete a W-4. Your answers decide how much tax comes out of every paycheck.
If too little is withheld, you may owe money when you file your tax return. If too much is withheld, you’ll probably get a refund, but you had less money in each paycheck during the year.
The form was redesigned in 2020. It no longer uses “allowances.” Instead, it asks direct questions about your filing status, other jobs, dependents and other income or deductions.
A W-4 covers federal income tax only. Social Security and Medicare are withheld at set rates, and many states have their own withholding form.
How to fill out a W-4, step by step
- Step 1 – Personal information: your name, address, Social Security number and filing status (single, married filing jointly or head of household). Everyone completes this step.
- Step 2 – Multiple jobs or spouse works: complete this if you have more than one job or are married filing jointly and your spouse also works. It helps avoid under-withholding.
- Step 3 – Claim dependents: enter amounts for qualifying children and other dependents if your income is within the limits shown on the form.
- Step 4 – Other adjustments (optional): 4(a) other income not from jobs, 4(b) deductions beyond the standard deduction and 4(c) any extra amount you want withheld each pay period.
- Step 5 – Sign and date: the form isn’t valid without your signature.
If you only complete Steps 1 and 5, your employer withholds as if you are single or married with one job and no other adjustments, based on your filing status. The IRS offers a free Tax Withholding Estimator online to help you choose the right entries.
Examples of W-4 in emails and messages
Onboarding email: “Please complete your W-4 and I-9 in the HR portal before your first day.”
Payroll reply: “Your new W-4 will take effect on the next payroll we process.”
Employee Slack: “Got married last month. Do I need to submit a new W-4?”
HR reminder: “If you claimed exempt from withholding last year, you must submit a new W-4 to keep that status.”
W-4 vs W-2 vs W-9
| Form | Who fills it out | What it’s for |
|---|---|---|
| W-4 | Employee | Tells employer how much federal income tax to withhold |
| W-2 | Employer | Year-end summary of your wages and taxes withheld |
| W-9 | Independent contractor or vendor | Gives a business your taxpayer ID; no withholding |
Learn more about W-2 employees and 1099 vs W-2 work.
How to use your W-4 correctly
- Update it after life changes. Marriage, divorce, a new baby, a second job or a big change in income are good reasons.
- Check your first paycheck. Make sure the federal withholding looks reasonable.
- Use Step 4(c) for side income. Adding a little extra withholding can prevent a surprise bill.
- Only claim exempt if you qualify. You generally must have had no tax liability last year and expect none this year, and the claim must be renewed each year.
- Don’t forget state forms. Your state may need its own withholding certificate.
Related terms
See more in our Payroll and Tax hub.
FAQ
What does W-4 stand for?
W-4 is the IRS form number. Its full name is Form W-4, Employee’s Withholding Certificate.
Do I send my W-4 to the IRS?
No. You give it to your employer, who uses it to calculate withholding and keeps it on file.
How often should I update my W-4?
Update it whenever your situation changes, such as marriage, a new child or a second job. Many people also review it once a year.
What happens if I don’t fill out a W-4?
Your employer generally must withhold as if you are single with no other adjustments, which may mean more tax is withheld than you need.
Does the W-4 still use allowances?
No. Since 2020 the W-4 asks about filing status, multiple jobs, dependents and other adjustments instead of allowances.
Sources
This article is general information, not legal or tax advice. Check with a qualified professional for your situation.
