A W-4 form, also known as the Employee’s Withholding Certificate, is a tax form used by employees in the United States to indicate their withholding status to their employer. It is used to determine the amount of federal income tax withheld from an employee’s paycheck each pay period. The W-4 form is completed by the employee and submitted to their employer. The information on the form is used by the employer to calculate the amount of federal income tax to withhold from the employee’s paycheck.
There are several benefits to completing a W-4 form. First, it helps to ensure that the correct amount of federal income tax is withheld from your paycheck. This can help you avoid owing taxes when you file your tax return, or receiving a smaller refund than you are entitled to. Second, the W-4 form can help you to adjust your withholding if your circumstances change. For example, if you get married, have a child, or start a new job, you may need to adjust your withholding to ensure that the correct amount of tax is being withheld.