IRS Releases the 2024 Version Of The Final Forms W-4

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. 

Steps 2, 3, and 4 can require more work for taxpayers with more than one job, have dependents, and/or a working spouse. 

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.