Employee's Withholding Certificate: Who Qualifies and What You Get
Learn how to adjust the amount of federal income tax taken from your paycheck to avoid unexpected tax bills at the end of the year.
This certificate allows you to tell your employer how much federal income tax should be taken out of your paychecks.
Who it's for
This is for anyone working as a W-2 employee.
What you get
By completing this form, you can adjust the amount of tax withheld from each paycheck. This helps ensure that the amount of tax you pay throughout the year aligns with your actual tax obligations.
What it costs you
It is free to complete. It typically takes about five minutes of your time, and you submit the finished document directly to your employer.
The catch to know
If you do not withhold enough money from your pay, you may face a surprise tax bill when you file your annual return. In some cases, this could also lead to penalties for underpayment.
How to apply
- Complete the official form provided by your employer or the tax authority.
- Review your filing status and any specific adjustments needed for your situation.
- Submit the completed form to your employer's payroll department.