Calculating Your Employee Tax Information

Quick Info to Help You Complete Your Tax Information

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Looking for Instructions on How to fill our the employee tax form? Check out our article on accessing and completing your employee tax information.

For help deciding your federal filing status, we’ve summarized content from the W4 and IRS website. This information is meant to simplify information on the W4 and should not be considered legal or tax advice, it is provided for your convenience and does not include all information regarding tax calculations or laws. For detailed instructions and filing advice, refer to the W4, IRS Publication 501, and IRS Publication 505.

Am I Exempt?

BOTH of these have to apply for you to claim exempt.

  • Last year you got a FULL refund of all federal income tax withheld (you had no tax liability)
  • This year you expect to get a full refund of all federal income tax (you expect to have no tax liability)

You can not file as exempt if someone else claims you on their taxes (unless one of the following applies: You are 65 or older, blind, make less than $1050/year, or will itemize your deductions).

How many allowances should I put?

Simply put, the more allowances you claim, the less taxes will be taken out of your check.

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We recommend using the IRS Withholding Calculator to ensure you are selecting the appropriate amount of allowances.

If you claim 0, the maximum amount of taxes will be taken out of your check. Sometimes people opt to claim 0 allowances (even if they can claim more) so they get a refund check at tax time.

If you claim more than 9 allowances, the IRS will review your W4.

While this isn’t a perfect method for selecting allowances, it is a good rule of thumb is that your total number of allowances should be:

Number of jobs + Number of dependents = Allowances

You can add 1 additional allowance if you are married and filing jointly (and your spouse doesn’t work) or if you are filing your taxes as head of household.

Allowances = # Jobs + # Dependents + Spouse or Head of Household (No=0) (Yes =1)
3 2 0 1
0 1 0 0
1 1 0 0
2 1 1 0
2 1 0 1
2 2 0 0
3 1 2 0
3 1 1 1
3 2 1 0


Taxes are extremely nuanced, so the IRS publishes allowances worksheets to help you calculate the appropriate number of allowances.

Personal Worksheet (applies to most people):

personal_allowances.PNG

Two-Earners/Multiple Jobs Worksheet (if you have multiple jobs or are married):

two_earners.PNG

Deductions and Adjustments Worksheet (If you are going to itemize your taxes or claim adjustments to your income):

Deductions.PNG

Should I add additional withholding?

This is a personal choice. Common reasons people chose to add additional withholding:

  • To get a larger tax refund
  • To compensate for underpayments earlier in the year
  • To compensate for taxes on other forms of income

Which filing status should I choose?

Single or Married is based on your legal marital status on the last day of the year. 

Single:
Not married, divorced or legally separated
Married:
Married (filing jointly)
Married, but withhold at higher Single rate:
Married, but filing separate tax returns

With this information, you should be able to complete your Employee Tax information. Feel free to reach out to our support team if you have any questions about the form.