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Why do some employees fill out a W-4 and some don't?
New York State Tax allowances (IT-2104 2012 vs 2011)W-4 Worksheet for Spouses Filing Jointly: Who Files the W-4?W4 Two-Earners Worksheet Divide By Number of Pay Periods Remaining?On a W4-P form, can I specify a withholding amount greater than the payment (due to early annuity withdrawal)?Just got a side job - w4 allowances sectionHow to calculate Two-Earners Worksheet mid-year for W4What are tax allowances? How many should I claim?W-4 Changes: confused when filling out line 9 for additional withholdings2018 W4 - Married or Married, but withhold at higher single rate?What are the implications of employer increasing allowances on W-4?
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I recognize W-4s are for calculating how much an employer should withhold from an employee for tax purposes. More allowances, less withheld. Less allowances, more withheld. This is the gist of it?
At my company, some employees have filled out W-4s while others have not. I'm confused at what the benefit of this is for the employee vs. the employer?
I honestly didn't realize that some employees do not have to fill out W-4s when on-boarding a job.
united-states form-w-2 form-w-4
add a comment |
I recognize W-4s are for calculating how much an employer should withhold from an employee for tax purposes. More allowances, less withheld. Less allowances, more withheld. This is the gist of it?
At my company, some employees have filled out W-4s while others have not. I'm confused at what the benefit of this is for the employee vs. the employer?
I honestly didn't realize that some employees do not have to fill out W-4s when on-boarding a job.
united-states form-w-2 form-w-4
add a comment |
I recognize W-4s are for calculating how much an employer should withhold from an employee for tax purposes. More allowances, less withheld. Less allowances, more withheld. This is the gist of it?
At my company, some employees have filled out W-4s while others have not. I'm confused at what the benefit of this is for the employee vs. the employer?
I honestly didn't realize that some employees do not have to fill out W-4s when on-boarding a job.
united-states form-w-2 form-w-4
I recognize W-4s are for calculating how much an employer should withhold from an employee for tax purposes. More allowances, less withheld. Less allowances, more withheld. This is the gist of it?
At my company, some employees have filled out W-4s while others have not. I'm confused at what the benefit of this is for the employee vs. the employer?
I honestly didn't realize that some employees do not have to fill out W-4s when on-boarding a job.
united-states form-w-2 form-w-4
united-states form-w-2 form-w-4
edited Jun 5 at 18:21
jed
asked Jun 5 at 18:16
jedjed
331114
331114
add a comment |
add a comment |
2 Answers
2
active
oldest
votes
This is functionally the same as submitting a W4 claiming 0. The employee is defaulted to the highest withholding for taxes. Some people like the quasi-forced-savings aspect of excess withholdings and the resulting refund check(s).
It doesn't make an ounce of difference to the employer.
4
Beat me to it! Here's a link where the IRS says that: irs.gov/publications/p15 "If a new employee doesn't give you a completed Form W-4, withhold income tax as if he or she is single, with zero withholding allowances." +1
– BrianH
Jun 5 at 18:22
Ah hm, so there's probably some salary threshold at the company for which they default an employee to claiming 0 / withholding highest amt. Like, we assume if you're making more than $X, you don't need to claim any allowances, unless you say otherwise (handing in a completed Form W-4). But if you make less than $X, we want you to calculate if you need to claim allowances. Right?
– jed
Jun 5 at 19:13
9
It has nothing to do with income it has to do with dependents and other tax considerations that an employer wouldn't know without being told by the employee.
– quid
Jun 5 at 19:14
And note that if you're going to fill it out as single/0 why bother?
– Loren Pechtel
Jun 6 at 1:30
@LorenPechtel: some people's circumstances change during the year. Also some people like to estimate in advance the number of allowances they'll need, to see if their estimated tax payment is accurate or not. And these days, "fill out a form" typically just means online, no stamp or paper needed.
– smci
Jun 6 at 15:19
add a comment |
There's two cases to consider where co-workers aren't really employees of the company:
Self-employed
These workers are independent contractors paid via a 1099. As self employed, they pay tax directly to the IRS and compute the appropriate allowances themselves.
Contract Employees
These employees are paid by a contractor or staffing service and would have submitted paperwork through their direct employer.
2
Another good point. Definitely a few employees who weren't asked to fill out W-4s at the company are either self-employed or contract.
– jed
Jun 5 at 19:18
add a comment |
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2 Answers
2
active
oldest
votes
2 Answers
2
active
oldest
votes
active
oldest
votes
active
oldest
votes
This is functionally the same as submitting a W4 claiming 0. The employee is defaulted to the highest withholding for taxes. Some people like the quasi-forced-savings aspect of excess withholdings and the resulting refund check(s).
It doesn't make an ounce of difference to the employer.
4
Beat me to it! Here's a link where the IRS says that: irs.gov/publications/p15 "If a new employee doesn't give you a completed Form W-4, withhold income tax as if he or she is single, with zero withholding allowances." +1
– BrianH
Jun 5 at 18:22
Ah hm, so there's probably some salary threshold at the company for which they default an employee to claiming 0 / withholding highest amt. Like, we assume if you're making more than $X, you don't need to claim any allowances, unless you say otherwise (handing in a completed Form W-4). But if you make less than $X, we want you to calculate if you need to claim allowances. Right?
– jed
Jun 5 at 19:13
9
It has nothing to do with income it has to do with dependents and other tax considerations that an employer wouldn't know without being told by the employee.
– quid
Jun 5 at 19:14
And note that if you're going to fill it out as single/0 why bother?
– Loren Pechtel
Jun 6 at 1:30
@LorenPechtel: some people's circumstances change during the year. Also some people like to estimate in advance the number of allowances they'll need, to see if their estimated tax payment is accurate or not. And these days, "fill out a form" typically just means online, no stamp or paper needed.
– smci
Jun 6 at 15:19
add a comment |
This is functionally the same as submitting a W4 claiming 0. The employee is defaulted to the highest withholding for taxes. Some people like the quasi-forced-savings aspect of excess withholdings and the resulting refund check(s).
It doesn't make an ounce of difference to the employer.
4
Beat me to it! Here's a link where the IRS says that: irs.gov/publications/p15 "If a new employee doesn't give you a completed Form W-4, withhold income tax as if he or she is single, with zero withholding allowances." +1
– BrianH
Jun 5 at 18:22
Ah hm, so there's probably some salary threshold at the company for which they default an employee to claiming 0 / withholding highest amt. Like, we assume if you're making more than $X, you don't need to claim any allowances, unless you say otherwise (handing in a completed Form W-4). But if you make less than $X, we want you to calculate if you need to claim allowances. Right?
– jed
Jun 5 at 19:13
9
It has nothing to do with income it has to do with dependents and other tax considerations that an employer wouldn't know without being told by the employee.
– quid
Jun 5 at 19:14
And note that if you're going to fill it out as single/0 why bother?
– Loren Pechtel
Jun 6 at 1:30
@LorenPechtel: some people's circumstances change during the year. Also some people like to estimate in advance the number of allowances they'll need, to see if their estimated tax payment is accurate or not. And these days, "fill out a form" typically just means online, no stamp or paper needed.
– smci
Jun 6 at 15:19
add a comment |
This is functionally the same as submitting a W4 claiming 0. The employee is defaulted to the highest withholding for taxes. Some people like the quasi-forced-savings aspect of excess withholdings and the resulting refund check(s).
It doesn't make an ounce of difference to the employer.
This is functionally the same as submitting a W4 claiming 0. The employee is defaulted to the highest withholding for taxes. Some people like the quasi-forced-savings aspect of excess withholdings and the resulting refund check(s).
It doesn't make an ounce of difference to the employer.
answered Jun 5 at 18:20
quidquid
40.5k879132
40.5k879132
4
Beat me to it! Here's a link where the IRS says that: irs.gov/publications/p15 "If a new employee doesn't give you a completed Form W-4, withhold income tax as if he or she is single, with zero withholding allowances." +1
– BrianH
Jun 5 at 18:22
Ah hm, so there's probably some salary threshold at the company for which they default an employee to claiming 0 / withholding highest amt. Like, we assume if you're making more than $X, you don't need to claim any allowances, unless you say otherwise (handing in a completed Form W-4). But if you make less than $X, we want you to calculate if you need to claim allowances. Right?
– jed
Jun 5 at 19:13
9
It has nothing to do with income it has to do with dependents and other tax considerations that an employer wouldn't know without being told by the employee.
– quid
Jun 5 at 19:14
And note that if you're going to fill it out as single/0 why bother?
– Loren Pechtel
Jun 6 at 1:30
@LorenPechtel: some people's circumstances change during the year. Also some people like to estimate in advance the number of allowances they'll need, to see if their estimated tax payment is accurate or not. And these days, "fill out a form" typically just means online, no stamp or paper needed.
– smci
Jun 6 at 15:19
add a comment |
4
Beat me to it! Here's a link where the IRS says that: irs.gov/publications/p15 "If a new employee doesn't give you a completed Form W-4, withhold income tax as if he or she is single, with zero withholding allowances." +1
– BrianH
Jun 5 at 18:22
Ah hm, so there's probably some salary threshold at the company for which they default an employee to claiming 0 / withholding highest amt. Like, we assume if you're making more than $X, you don't need to claim any allowances, unless you say otherwise (handing in a completed Form W-4). But if you make less than $X, we want you to calculate if you need to claim allowances. Right?
– jed
Jun 5 at 19:13
9
It has nothing to do with income it has to do with dependents and other tax considerations that an employer wouldn't know without being told by the employee.
– quid
Jun 5 at 19:14
And note that if you're going to fill it out as single/0 why bother?
– Loren Pechtel
Jun 6 at 1:30
@LorenPechtel: some people's circumstances change during the year. Also some people like to estimate in advance the number of allowances they'll need, to see if their estimated tax payment is accurate or not. And these days, "fill out a form" typically just means online, no stamp or paper needed.
– smci
Jun 6 at 15:19
4
4
Beat me to it! Here's a link where the IRS says that: irs.gov/publications/p15 "If a new employee doesn't give you a completed Form W-4, withhold income tax as if he or she is single, with zero withholding allowances." +1
– BrianH
Jun 5 at 18:22
Beat me to it! Here's a link where the IRS says that: irs.gov/publications/p15 "If a new employee doesn't give you a completed Form W-4, withhold income tax as if he or she is single, with zero withholding allowances." +1
– BrianH
Jun 5 at 18:22
Ah hm, so there's probably some salary threshold at the company for which they default an employee to claiming 0 / withholding highest amt. Like, we assume if you're making more than $X, you don't need to claim any allowances, unless you say otherwise (handing in a completed Form W-4). But if you make less than $X, we want you to calculate if you need to claim allowances. Right?
– jed
Jun 5 at 19:13
Ah hm, so there's probably some salary threshold at the company for which they default an employee to claiming 0 / withholding highest amt. Like, we assume if you're making more than $X, you don't need to claim any allowances, unless you say otherwise (handing in a completed Form W-4). But if you make less than $X, we want you to calculate if you need to claim allowances. Right?
– jed
Jun 5 at 19:13
9
9
It has nothing to do with income it has to do with dependents and other tax considerations that an employer wouldn't know without being told by the employee.
– quid
Jun 5 at 19:14
It has nothing to do with income it has to do with dependents and other tax considerations that an employer wouldn't know without being told by the employee.
– quid
Jun 5 at 19:14
And note that if you're going to fill it out as single/0 why bother?
– Loren Pechtel
Jun 6 at 1:30
And note that if you're going to fill it out as single/0 why bother?
– Loren Pechtel
Jun 6 at 1:30
@LorenPechtel: some people's circumstances change during the year. Also some people like to estimate in advance the number of allowances they'll need, to see if their estimated tax payment is accurate or not. And these days, "fill out a form" typically just means online, no stamp or paper needed.
– smci
Jun 6 at 15:19
@LorenPechtel: some people's circumstances change during the year. Also some people like to estimate in advance the number of allowances they'll need, to see if their estimated tax payment is accurate or not. And these days, "fill out a form" typically just means online, no stamp or paper needed.
– smci
Jun 6 at 15:19
add a comment |
There's two cases to consider where co-workers aren't really employees of the company:
Self-employed
These workers are independent contractors paid via a 1099. As self employed, they pay tax directly to the IRS and compute the appropriate allowances themselves.
Contract Employees
These employees are paid by a contractor or staffing service and would have submitted paperwork through their direct employer.
2
Another good point. Definitely a few employees who weren't asked to fill out W-4s at the company are either self-employed or contract.
– jed
Jun 5 at 19:18
add a comment |
There's two cases to consider where co-workers aren't really employees of the company:
Self-employed
These workers are independent contractors paid via a 1099. As self employed, they pay tax directly to the IRS and compute the appropriate allowances themselves.
Contract Employees
These employees are paid by a contractor or staffing service and would have submitted paperwork through their direct employer.
2
Another good point. Definitely a few employees who weren't asked to fill out W-4s at the company are either self-employed or contract.
– jed
Jun 5 at 19:18
add a comment |
There's two cases to consider where co-workers aren't really employees of the company:
Self-employed
These workers are independent contractors paid via a 1099. As self employed, they pay tax directly to the IRS and compute the appropriate allowances themselves.
Contract Employees
These employees are paid by a contractor or staffing service and would have submitted paperwork through their direct employer.
There's two cases to consider where co-workers aren't really employees of the company:
Self-employed
These workers are independent contractors paid via a 1099. As self employed, they pay tax directly to the IRS and compute the appropriate allowances themselves.
Contract Employees
These employees are paid by a contractor or staffing service and would have submitted paperwork through their direct employer.
edited Jun 5 at 18:29
answered Jun 5 at 18:23
user71659user71659
2,260813
2,260813
2
Another good point. Definitely a few employees who weren't asked to fill out W-4s at the company are either self-employed or contract.
– jed
Jun 5 at 19:18
add a comment |
2
Another good point. Definitely a few employees who weren't asked to fill out W-4s at the company are either self-employed or contract.
– jed
Jun 5 at 19:18
2
2
Another good point. Definitely a few employees who weren't asked to fill out W-4s at the company are either self-employed or contract.
– jed
Jun 5 at 19:18
Another good point. Definitely a few employees who weren't asked to fill out W-4s at the company are either self-employed or contract.
– jed
Jun 5 at 19:18
add a comment |
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