For many states, employers can use the same filing status that an employee has entered on the federal Form W-4 if the employee wants to claim the same marital status, number of regular allowances, and/or the same additional dollar amount to be withheld for state and federal purposes.
Form W-4: Federal withholding certificate (Item 3, Filing Status
In Online Payroll, you'll be required to select a filing status for each employee. Filing status is item 3 from the Form W-4 that your employee filled out. This determines whether to withhold taxes at the single rate or the lower married rate.
What if the W-4 says Exempt on line 7
Your employee might claim an exemption from income tax withholding by writing Exempt on Line 7 of the W-4, or its state equivalent. In that case, select Do Not Withhold as the filing status.
- States withholding allowance certificates: W-4 and/or W-5 forms
- Form W-4: Who needs to fill it out? Do I have to file it?
- Form W-4: Employee withholding allowances