Form W-4
Understand how to manage and update IRS Form W-4 for accurate tax withholding.
Understanding and updating Form W-4
Goals
- Understand the purpose of IRS Form W-4
- Learn how to manage and update Form W-4 data in Console
- Identify when updates are necessary based on employee circumstances
What is Form W-4?
Form W-4 (Employee’s Withholding Certificate) is an IRS form that employees complete to inform their employer how much federal income tax to withhold from each paycheck. The information on this form ensures that withholding is accurate, helping employees avoid overpaying or underpaying federal taxes throughout the year.
The form includes sections for:
- Personal information
- Multiple jobs or working spouse
- Dependent claims
- Other income and deductions
- Additional withholding
Accurate and timely updates to Form W-4 reduce the risk of a large tax bill or refund when filing annual taxes.
How to manage W-4 information in Console
Form W-4 is typically completed during onboarding, but employees may update it at any time. Console provides multiple methods to update W-4 information.
Option 1: Generate onboarding link
Note: Partners may surface this link differently within their own platforms.
- In Console, go to the Company and select the Employee tab.
- Select the employee whose W-4 needs to be updated.
- Click Generate Onboarding Link.
- This sends the employee a link to update tax information.
- Once personal information is completed, the employee can navigate to Tax Withholding.
- The employee either completes and signs the W-4 section or selects Regenerate and Sign to update an existing record.
- The onboarding link is valid for a single use and expires after 24 hours.
Option 2: Edit withholdings directly
If incorrect information was entered or changes are needed:
- Go to the employee’s profile in Console.
- Select the Withholdings tab.
- Click Federal.
- Select the pencil icon to edit values and save the changes.
Option 3: Bulk upload withholdings
For large-scale onboarding or company-wide updates:
- Navigate to the Employees tab in Console.
- Download the Bulk Withholdings Template.
- Complete the template with W-4 data for each employee.
- Return to the same screen and upload the completed file.
Frequently asked questions
Why would an employee need to update their Form W-4?
Employees may need to update Form W-4 following life changes or employment shifts. Common reasons include:
- Marriage or divorce: Marital status affects filing status and withholding.
- Birth or adoption: New dependents may reduce tax liability.
- Death of a spouse or dependent: Reduces dependent count and affects filing status.
- Starting a new job or holding multiple jobs: Income changes require updated withholding.
- Spouse starting or stopping work: Dual incomes must be considered when calculating withholding.
What if an employee claims they are exempt?
To qualify for exemption from federal income tax withholding, the employee must:
- Have owed no federal income tax in the prior year, and
- Expect to owe no federal income tax in the current year
When completing the Tax Withholding Setup via the onboarding link, the employee can indicate exempt status.
Last updated on June 6, 2025