2020 Form W-4, Employee’s Withholding Certificate

Step 1- Employee Personal Information

Step 1 must be completed by all employees.

• 1. Enter name and address
• 2. SSN of employees
• 3. Enter filing status if filing as
  • i. single or married;
  • ii. separately or jointly; or
  • iii. Head of household

If an employee miss to choose the option in Step 1(c), employers are required to calculate their withholding as “Single”.

Step 2- Multiple jobs or Spouse works

Employees should complete this step if having more than one job or if an employee file jointly with a spouse who also works.

An employee can calculate this by either using the IRS Tax Withholding Estimator or by using the Multiple Jobs Worksheet.

If an employee dealing with two jobs that have same pay for both the job, he/she can simply check the box on Line C of this section.

Step 3- Claim dependents

If an employee completes Step 2 of Form W-4, he/she must also complete Step 3 for only one of the jobs from Step 2.

Step 3 of 2020 Form W-4 helps you determine if an employee qualifies for the child tax credit and the credit for other dependents, which an employee may be able to claim while filing individual tax returns.

Click here to know more about the conditions for qualifying child tax credit. If an employee qualifies for the child tax credit, less tax would be withheld from the qualified paycheck.

Step 4- Other adjustments (Optional)

Employees have to complete this step if having any other additional requirements when considering withholding:

• 1. Other income (not from jobs)
• 2. Deductions (other than the standard deductions like mortgage interest and charitable contributions)
• 3. Extra withholding (If an employee would like to withhold any additional withholding for the pay period)

Step 5- Signing the Form

If an employee not signing the Form, the Form is considered invalid. After completing all the steps, send the completed Form W-4 to the employer.

For more details, visit irs.gov.