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Showing posts from February, 2017

W-4, Where For Art Thou?

One of our entrepreneurial minded QuickBooks students asked in class yesterday about employee W-4 forms.
She is looking to go into business with her son. She wanted to know about the IRS Schedule for withholding and so it gave us an opportunity to explore the W4 form
The W4 form is an excellent opportunity for employers to keep track of what's been going on with their employees an update their information. New boys always fill out the form, but a solid strong accounting practice is to ask all employees to fill out a new form at the beginning of each year.
Why a new W-4 form each year?
Threw out here a lot of changes can take place and people forget to report it to their employers. For example when somebody moves, somebody got married, and older child moving out and is no longer a dependent?
Another reason can be found directly on the instruction page that accompanies the form: Future developments -Information about any future developments affecting Form W-4 (such as legislation enacted…