MANAGEMENT

Detailed explanation-1: -What Is a W-4? Form W-4, the Employee’s Withholding Certificate, is filled out by an employee to instruct the employer how much to withhold from your paycheck. The IRS requires that individuals pay income taxes gradually throughout the year.

Detailed explanation-2: -Exemption From Withholding If an employee qualifies, he or she can also use Form W-4 to tell you not to deduct any federal income tax from his or her wages. To qualify for this exempt status, the employee must have had no tax liability for the previous year and must expect to have no tax liability for the current year.

Detailed explanation-3: -The W-4 Form is an IRS form that you complete to let your employer know how much money to withhold from your paycheck for federal taxes. Accurately completing your W-4 can help you prevent having a big balance due at tax time.

Detailed explanation-4: -The W-2 reports how much you earned from your employer as well as how much tax was withheld on your behalf during the tax year. You should consider reviewing your tax withholding annually to ensure you withhold the correct amount of money from your paychecks.