The Internal Revenue Service publishes the current version of Form W-4, Employee's Withholding Allowance Certificate, on its website. The Form W-4 page was updated on Sept. 14, 2015, the IRS website shows.Continue Reading
Employers withhold income tax from their employees' pay based their earnings and on the information employees provide on Form W-4, states the IRS. Form W-4 tells employers whether to withhold taxes based on the single or married tax rate and whether employees request additional tax withheld from their pay. Employees calculate and report their withholding allowances on Form W-4, reducing the taxes withheld for each allowance claimed. Tax filers who had no tax liability in the prior year or anticipate a zero tax liability in the current tax year may claim that they are exempt from having income taxes withheld from their pay.
Employers must update withholding for an employee who files a Form W-4 within 30 days of the end of the payroll period in which the form is submitted, notes the IRS. The IRS recommends that employees update their Form W-4 annually or in the event of life changes such as marriage or divorce or a change in finances. Employers must withhold taxes at the highest rate from employees who do not file Form W-4.Learn more about Taxes