The IRS released the 2024 Form W-4, Employee’s Withholding Certificate, with few changes. Instructions for using the IRS’s tax withholding estimator when figuring withholding for multiple jobs, which were removed in the 2023 version, have been added back to the form. The amounts in the tax tables for use with the Multiple Jobs Worksheet have been updated for 2024.
The W-4 is completed whenever an employee starts a new job or modifies their withholding status and is an important compliance piece for payroll administrators.
2024 W-4 For Employees
The W-4 is intended to be easy for employees to fill out and to accurately tell their employers how much federal income tax they want to be withheld from their pay. Employees can elect to withhold federal income taxes for 2024 based only on marital status. If they choose this option, the employee completes only Step 1 with their name, address, Social Security number, and filing status, and Step 5, where they sign and date the form. The result should be less confusion and less time spent navigating the entire form.
Steps 2, 3, and 4 can require more work for taxpayers with more than one job, have dependents, and/or a working spouse.
2024 W-4 Tax Withholding Estimator
Employees who are married, have dependents, hold more than one job, or have a spouse who also works will need to complete Steps 2, 3, and 4. They may also use the Tax Withholding Estimator to get the most accurate withholding.
The Estimator is quite detailed and will require information from current paystubs, any bonuses expected for the current year, retirement or other income, contributions to 401K, child care, health insurance, and more.
Steps 3 and 4 are straightforward. Step 3 is used to claim deductions for dependents. Step 4 allows for additional income with no withholding, deductions outside of standard deductions, and additional withholding the employee may want to add to the calculated withholding amount.
