Introduction
Please note that this feature is only available to our HR Plus customers. If you would like to have HR Plus enabled, please speak with your Customer Success Manager.
Your employees need to be paid, and you need to know how much federal tax should be withheld from their salaries. That's where the W-4 comes in--it helps your company know how much income tax to take out of an employee's salary. Form W-4, or Employee’s Withholding Allowance Certificate, is the form that employees fill out so that the employer can withhold the correct federal income tax from their pay.
Most companies have new employees fill out Form W-4 on their first day so they can get the employee's information into the payroll system before their first payday. It's a good idea to encourage your employees to review their Form W-4 annually and complete a new one when their financial situation changes. If employees want some help completing their W-4, they might find the IRS Withholding Calculator helpful.
People often confuse the W-4 (which is for employees) with the W-9 (which is for consultants/advisors). For more information on that document, see our Form I-9s article.
HR Plus makes it easier for your employees to complete their Form W-4 in the platform and allows you to see the status of each employee's W-4 at a glance with the Employee Overview Report.
Frequently Asked Questions
How can I configure the system so that my employee's W-4s are filled out generatively?
Under HR Settings in the Administration workspace, click on Employment Workflows. On the left panel of the Employment Workflows page, select the Form W-4 tab. Select Yes to Generate Form W-4s.
After you've set up those settings, the Submit or Update Your IRS Form W-4 workflow will be available to your employees in their workspace.
How can I configure the system so that my employees whose offer letters are generated on the platform are prompted to complete their W-4s on the platform, but employees whose offer letters are uploaded to the system are not prompted to complete a W-4?
During the Add Employee workflow, when you upload an employee's offer letter there is an option to Require Onboarding Paperwork? If you check yes for this option, then the employee will receive an email reminder to complete an I-9 and W-4. If this box is not checked, the employee will not receive a reminder.
Where can I find a list of all present and missing W-4s at a glance?
The platform allows you to see the status of each employee's W-4 at a glance in the Document Audit Report. You'll find this in the Human Resources panel of your Company Workspace.
What is the Employee Form W-4 (Upload Only) workflow?
The Employee Form W-4 (Upload Only) workflow is only available to those with full HR access and above.
It is used for W-4 forms that were finished previously and are being entered into the system for record-keeping purposes.
Why has my employee filled out their W-4 multiple times?
The W-4 form is available to employees to fill out at any time. Your employees may wish to complete a new one when their financial situation changes.
Additional Resources
Fidelity does not provide legal or tax advice. The information herein is general in nature and should not be considered legal or tax advice. Consult an attorney or tax professional regarding your specific situation.
Fidelity Private Shares LLC provides cap table management and other administrative services to private companies and their equity compensation plans.
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