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Form W-4 Definition | Concise and Expanded

December 23, 2015

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Form W-4 Definition

Taxpayers complete federal Form W-4, Employee’s Withholding Allowance Certificate, when they are hired by an employer. The information on the form is used to identify the employee and calculate income tax withholding from payroll.

Expanded Definition

Form W-4 is also known as Employee’s Withholding Allowance Certificate. It is a required form used by employers to obtain information about a new employee. Information requested includes name, Social Security number and address. It is used to determine the amount of federal income tax that should be withheld from an employee’s payroll check. The form can also be used to provide an update when the employee’s financial or personal information changes.

Related Article:

Personal Allowances Worksheet |How-to Determine Form W-4 Allowances
W-4 Exemption Deadline Can Affect Your Payroll

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