New Form W-4 Designed to Better Estimate Accurate Tax Withholding
In December 2019, the Internal Revenue Service (IRS) released a new Form W-4 designed to help employees better estimate accurate tax withholding throughout the year. Too little tax withheld can result in a tax bill when taxes are filed. Too much tax withheld means you will receive a tax refund, and your money will not be available to spend or invest until your tax refund is received.
Online Self-Service Form W-4
To facilitate the completion of the new Form W-4, the UW now offers an online self-service Form W-4. Completion of this new form is not required, but all employees are encouraged to review the new form and their individual tax situation.
The Update Federal and/or State Form W-4 tip sheet is a resource available to help you use self-service to complete Form W-4.
How do I Determine How Much Tax I Should Have Withheld?
The Tax Withholding Estimator is a tool on the IRS website designed to help you determine how to have the correct amount of tax withheld from your paychecks so you don't have too much or too little federal income tax withheld.
Before you use the tax withholding estimator:
- Gather the most recent earnings statements for yourself, and if you are married filing jointly, for your spouse.
- Gather information for other sources of income.
- Have your most recent income tax return available.
- Use whole dollar amounts in the estimator.
Keep in mind that the tax withholding estimator’s results will only be as accurate as the information you enter. If you have questions about the new Form W-4 or the available resources, please contact your Payroll office. Please note that the UW is not authorized to provide tax advice.
Source: UW-Shared Services, Service Operations