The W-4 form is a document that employees fill out and give to their employers. This form tells the employer how much tax to deduct from the employee’s salary. It is important to fill out the W-4 form accurately because the amount of tax withheld by your employer from your gross salary for the federal income tax can have a significant impact on the amount of salary you take home.
A new version of the W-4 form is now available. Contrary to changes made to the W-4 form in the year 2020, IRS only made a few minor changes this year. Although the changes are small, you should still know them.
Since you know why the W-4 form is so important for you, it is important to be aware of the minor changes IRS has made to the form.
2023’s new W-4 form
There are not too many, or substantial, changes made to the W-4 form, as previously mentioned. However, there are a couple of changes you should know about.
Here are the changes to the W-4 form:
1. Tax withholding estimator references were removed by the IRS
2. Deductions Worksheet amounts for 2023 have been updated
3. Step 2(c) of the W-4 form now includes additional text to clarify who should use the checkbox for two jobs.
Final words
W-4 forms are important to employees since they have a direct relationship to their salaries and taxes. The W-4 form is significant because it determines how much tax will be withheld from the paycheck of the employees. The amount of tax withheld will have a significant will impact on the paychecks employees are taking home. That is the reason you should stay up to date with the changes that have been made to the W-4 form.
