Form W-4 is required when an individual starts a new job as an employee and federal income tax withholding must be applied to wages. The form provides the employer with the information needed to begin withholding correctly from the first payroll payments.
Use at the Start of Employment
At the beginning of employment, an employer must determine how federal income tax will be withheld from an employee’s wages. Form W-4 is used to establish the initial withholding framework based on the information supplied by the employee.
Separate Form for Each Employer
When an employee starts a new job while already employed elsewhere, a separate Form W-4 is completed for the new employer. Each employer applies withholding independently using the form it receives.
Initial Withholding Setup
The information provided on Form W-4 at a new job determines how withholding tables and formulas are applied going forward. The form does not transfer automatically between employers and must be provided directly to the new employer.
Retention by the Employer
Form W-4 completed for a new job is retained by the employer as part of payroll records. It is generally not filed with the Internal Revenue Service unless specifically requested.