Employees are reminded to review their W-4 for 2018 and to file a new one, if necessary.
Form W-4 determines the amount of federal taxes that will be withheld from your paycheck. If not enough tax is withheld, you may face a penalty when filing your personal income tax return. In past years, 2.5 million taxpayers were assessed an average penalty of $155 each for failing to pay enough tax during the year.
On the other hand, if too much is being withheld, you are making an interest-free loan to the U.S. government and you are losing out on interest you could have been earning throughout the year. Each year, about 73.5 percent of taxpayers receive a refund when they file their returns.
Why would your filing status change from year to year?
Listed below are some possible reasons:
- Birth or adoption of a child
- Purchase or sale of a home
- Taking a second job
- Spouse returning to work
- Receiving income not subject to withholding (e.g., rent, dividends, interest)
To determine your W-4 withholding status, complete the worksheet on the back of a W-4 or consult your tax advisor. You may also visit www.irs.gov and select the IRS withholding calculator to determine your withholding status.
Employees who want to change their W-4 withholdings must log into UltiPro. Once logged in, select the "Menu" tab and "Myself." Under "Pay," select "Income Tax" and then select the option on the right to "Add/Change Withholding Form." Follow the instructions on the form then submit.