Overview
As part of setting up payroll, you will need to complete and submit a W-4 form for yourself that sets your tax withholding. This document will walk you through how to calculate your tax withholding and link to resources to walk you through completing Form W-4 for yourself.
How to calculate your tax withholding
When it comes to withholdings, it’s a good idea to calculate your tax withholding yourself so you don’t overpay or underpay in taxes. The IRS recommends that you check your withholding tax early in the calendar year, any time tax law changes, and whenever you have a significant life change, like an adjustment to your income or home purchase.
Before you calculate your withholding tax, make sure you have the following information on hand:
- Your filing status
- Your primary income source
- Any additional income sources
- The end date of your most recent pay period
- Your wages per period and the year-to-date (YTD) totals
- The amount of federal income tax per pay period and the total paid year-to-date
- Whether you claim standardized or itemized deductions
- The amount of tax credits you take
From there, you can use this tool to calculate your withholding taxes.
How to fill out Form W-4
Gusto has a great resource that walks you through how to fill out your W-4. We recommend working through the steps here to complete your W-4.
In the recording below, Heard Payroll Specialist Christina Francis walks through the process of completing Form W-4.