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.

Per the IRS guidelines, if an employer does not have a completed Form W-4 from an employee, withhold their tax as single with no withholding allowances.

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.

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