A W4 form is an essential document that every small business owner should collect from their employees before issuing their first paycheck.
While the IRS does not obligate you to report any information claimed by your employees on their W4, these forms are still subject to review. The revenue service may ask you to send the W4 form to them.
The repercussions of a new employee not submitting a W4 falls on them – with the possibility of having more tax withheld from their salary than supposed to be.
Read on and learn more about Form W-4 from your perspective as an employer.
What is a W4 Tax Form?
A W4 Tax Form, or Employee’s Withholding Certificate, is an IRS document containing information regarding the amount of tax to withhold from your employee’s paycheck. Using this form, you can calculate the payroll taxes and send the amount to the state and the IRS on behalf of your employee.