All About the W4

 

The W4 can help your employee not owe at the end of the year

Each new household employee that you hire needs to fill out a W4 form in order for you to withhold the correct amount of federal income tax. Your employee doesn’t want a tax surprise at the end of the year, either owing a lot or getting a large refund.

Nest Payroll defaults to “Single” and “0” withholdings (which is withholding the most), but it’s easy to change this in the employee profile (see further below).

To Access the W4 form:

Below is the link to access the W4 form. Print it out for your employee, and after it's filled in and returned to you, keep the completed form in a safe place (along with the I-9 form).

https://www.irs.gov/pub/irs-pdf/fw4.pdf

Withholding Calculator:

https://www.irs.gov/individuals/irs-withholding-calculator

To change the W4 elections in Nest Payroll:

In the App, click on the “My Team” button at the bottom, click on your Employee's name, click "edit" in the upper right hand corner, then scroll down to “W4 Information”, to change the W4 elections for Federal Marital Status or No. (number) of Allowances. The default is 0, which is the most withheld. This withholding will also apply automatically to your state. And if you live in California, it's worth noting that the state of California "Head of Household" is the same as "Single".