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State W-4 Kind | Detailed Withholding Types by State Chart

If you rent new workers, you have to acquire info to confirm employment eligibility and run payroll. Federal Types W-4 and I-9 are just the start relating to new worker varieties. You might also want to gather state-specific varieties, together with your state’s W-4. What’s the state W-4 kind?

What’s a state W-4 kind? 

State W-4s work equally to the federal Kind W-4, Worker’s Withholding Certificates. Employers use state W-4s to find out state revenue tax withholding for workers. States both use their very own model of the state W-4 or the federal Kind W-4. Until your workers work in a state with no state revenue tax, they typically should fill out the W-4 state tax kind earlier than beginning a brand new job.

definition of what is a state w-4 form

Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming do not need state revenue tax. Most different states require workers to finish the W-4 for state taxes, except the state imposes a flat revenue tax fee.

Your workers’ info on the W-4 state kind determines how a lot you’ll withhold from their wages for state revenue tax. 

Many states use state withholding allowances to find out withholding. Staff can declare state tax allowances for themselves, a partner, or youngster. The extra state tax withholding allowances an worker claims on their state W-4, the much less you withhold.

Most states replace their W-4 varieties yearly. Go to your state’s web site to confirm you’re utilizing essentially the most up-to-date state W-4 kind.

After accumulating your workers’ accomplished state W-4 varieties, use them to find out how a lot to withhold when operating payroll. Retailer workers’ state tax withholding varieties in your information.

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Federal vs. state Types W-4

As an employer, you might have to withhold three sorts of revenue tax from worker wages, together with federal, state, and native revenue taxes. You could distribute each federal and state Types W-4 to workers so you’ll be able to precisely run payroll. However, what’s the distinction?

Staff use the federal Kind W-4 for federal revenue tax withholding. Staff use their state’s model of Kind W-4 for state revenue tax withholding. Some states let employers calculate an worker’s state revenue tax withholding based mostly on the data they enter on the federal Kind W-4.

Up to date federal W-4 

In 2020, the IRS launched a new W-4 kind that eradicated withholding allowances. Nonetheless, many states nonetheless use withholding allowances for his or her state revenue tax construction. 

Due to this transformation, some states that beforehand used the federal kind for state revenue tax withholding have created their very own model of Kind W-4 (e.g., Idaho). States that proceed to make use of the federal model made modifications to their state revenue tax construction. 

Right here’s the underside line: The 2020 model of the federal W-4 kind might have finished away with withholding allowances for federal revenue tax withholding. However, many states proceed to make use of withholding allowances for state revenue tax withholding. 

Listed below are the states which have created their very own model of the state W-4 kind relatively than utilizing the IRS’s up to date model:

  • Colorado* (workers can use both the federal W-4 or Colorado’s state W-4 kind)
  • Delaware* (workers can use both the federal W-4 or Delaware’s state W-4 kind)
  • Idaho
  • Minnesota
  • Montana
  • Nebraska 
  • South Carolina 

These are the states that can proceed to make use of the federal W-4 kind:

  • New Mexico* (New Mexico makes use of a model of the federal W-4 that has blacked-out containers)
  • North Dakota 
  • Utah

State tax withholding varieties chart 

You can’t precisely run payroll till you know the way a lot to withhold for state revenue tax. Use this chart to study which state W-4 kind you have to distribute to and acquire from new hires.

State State W-4 Kind
Alabama Kind A-4, Worker’s Withholding Tax Exemption Certificates
Alaska N/A, no state revenue tax
Arizona Arizona Kind A-4, Worker’s Arizona Withholding Election
Arkansas Kind AR4EC, State of Arkansas Worker’s Withholding Exemption Certificates
California Kind DE 4, Worker’s Withholding Allowance Certificates
Colorado Kind DR 0004, Colorado Worker Withholding Certificates
Connecticut Kind CT-W4, Worker’s Withholding Certificates
D.C. Kind D-4, Worker Withholding Allowance Certificates
Delaware Delaware W-4, Worker’s Withholding Allowance Certificates
Florida N/A, no state revenue tax
Georgia Kind G-4, State of Georgia Worker’s Withholding Allowance Certificates
Hawaii Kind HW-4, Worker’s Withholding Allowance and Standing Certificates
Idaho Kind ID W-4, Worker’s Withholding Allowance Certificates
Illinois Kind IL-W-4, Worker’s and different Payee’s Illinois Withholding Allowance Certificates and Directions
Indiana Kind WH-4, Worker’s Withholding Exemption and County Standing Certificates
Iowa Kind IA W-4, Worker Withholding Allowance Certificates
Kansas Kind Okay-4, Kansas Worker’s Withholding Allowance Certificates
Kentucky Kind Okay-4, Kentucky’s Withholding Certificates
Louisiana Kind L-4, Worker Withholding Exemption Certificates
Maine Kind W-4ME, Maine Worker’s Withholding Allowance Certificates
Maryland Kind MW507, Worker’s Maryland Withholding Exemption Certificates
Massachusetts Kind M-4, Massachusetts Worker’s Withholding Exemption Certificates
Michigan Kind MI-W4, Worker’s Michigan Withholding Exemption Certificates
Minnesota Kind W-4MN, Minnesota Worker Withholding Allowance/Exemption Certificates
Mississippi Kind 89-350-12-2, Mississippi Worker’s Withholding Exemption Certificates
Missouri Kind MO W-4, Worker’s Withholding Certificates
Montana Kind MW-4, Montana Worker’s Withholding Allowance and Exemption Certificates
Nebraska Kind W-4N, Worker’s Nebraska Withholding Allowance Certificates
Nevada N/A, no state revenue tax
New Hampshire N/A, no state revenue tax
New Jersey Kind NJ-W4, Worker’s Withholding Allowance Certificates
New Mexico Kind W-4, Worker’s Withholding Certificates (for New Mexico State Withholding Solely)
New York Kind IT-2104, Worker’s Withholding Allowance Certificates
North Carolina Kind NC-4, Worker’s Withholding Allowance Certificates
North Dakota Kind W-4, Worker’s Withholding Certificates
Ohio Kind IT-4, Worker’s Withholding Exemption Certificates
Oklahoma Kind OK-W-4, Worker’s Withholding Allowance Certificates
Oregon Kind OR-W-4, Oregon Worker’s Withholding Assertion and Exemption Certificates
Pennsylvania N/A, everybody pays a flat fee except exempt
Rhode Island RI W-4, State of Rhode Island Division of Taxation Worker’s Withholding Allowance Certificates
South Carolina SC W-4, South Carolina Worker’s Withholding Allowance Certificates
South Dakota N/A, no state revenue tax
Tennessee N/A, no state revenue tax
Texas N/A, no state revenue tax
Utah Kind W-4, Worker’s Withholding Certificates
Vermont Kind W-4VT, Worker’s Withholding Allowance Certificates
Virginia Kind VA-4, Worker’s Virginia Earnings Tax Withholding Exemption Certificates
Washington N/A, no state revenue tax
West Virginia Kind WV/IT-104, West Virginia Worker’s Withholding Exemption Certificates
Wisconsin Kind WT-4, Worker’s Wisconsin Withholding Exemption Certificates/New Rent Reporting
Wyoming N/A, no state revenue tax

*Some states might require extra varieties for particular circumstances. Verify together with your state for extra info. 

Psst: W-4 varieties aren’t the one ones you have to find out about.

Obtain our FREE information to get the inside track on different employment varieties to gather from workers (+ the employer varieties you have to file!).

Updating state tax withholding varieties

Your workers might need to modify their withholding on their state W-4 after finishing the unique kind. For instance, an worker might get married or divorced, add or take away a dependent, or undergo one other life occasion that impacts their withholding.

Staff can replace their state tax withholding varieties all year long. You should definitely acquire their up to date state tax varieties on your information and modify your payroll.

State withholding and Kind W-2 

Every year, you’re answerable for reporting how a lot you paid workers and withheld from their wages for revenue and payroll taxes when filling out W-2, Wage and Tax Assertion.

Containers 15-17 on Kind W-2 cope with your state. Report how a lot you withheld and remitted for state revenue tax in Field 17. Once more, the quantity you withheld for the yr is usually based mostly on the worker’s state W-4.

In case your workers work in a state with state revenue tax, you have to acquire state W-4 varieties and retailer them in your information. Make a copy within the cloud with Patriot’s on-line HR software program. The HR software program integrates with our on-line payroll. Attempt each at no cost right this moment!

This text has been up to date from its unique publication date of December 31, 2018. 

This isn’t meant as authorized recommendation; for extra info, please click on right here.



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