The Form W-4, an Employee’s Withholding Allowance Certificate, is completed by each new employee to indicate the amount of federal tax the employer should withhold from his or her wages. An employee that does not submit a completed W-4 will be set-up as "Single" with no allowances. An employee’s Form W-4 remains in effect until a new form is completed. An employee is able to make changes to their Form W-4 throughout the year, until he/she is satisfied with the amount withheld each pay period.
An employee must complete a new Form W-4 if:
- Change in filing status such as a marriage or divorce.
- Change in number of exemption allowances, such as when a child is no longer claimed as a dependent, or when there is a change in the amount of deductions or credits allowed.
- Taxpayer is no longer allowed to claim exempt from withholding.
The Form W-5, an Earned Income Tax Credit Advance Payment Certificate, is completed by employees who wish to receive a portion of the credit in advance with their pay. The EIC (Earned Income Credit) is a refundable tax credit for certain workers. It reduces the tax you owe. It may give you a refund even if you do not owe any tax. Form W-5 expires on December 31 of each year. A new form must be filed each year in order to continue receiving advance EIC.
You may access these forms from the IRS webpage: www.irs.gov