Every employee must complete a Form W-4, or Employee’s Withholding Allowance Certificate, which determines the amount of income withheld each pay period for federal taxes. The amount ideally will match your actual tax liability, although some people have additional money withheld so they receive a refund on their tax return. If not enough tax is withheld, you will owe the government money at the end of the year and may have to pay interest and a penalty. It’s beneficial to complete the W-4 as soon as possible after you are hired, because until it is submitted, your employer will have to withhold the maximum amount of tax. (www.irs.gov).
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