Tip:

Consider advising employees to use the IRS Tax Withholding Estimator, available at IRS.gov/W4App , when completing Form W-4 if they expect to work only part of the year; receive dividends, capital gains, social security, bonuses, or business income; are subject to the Additional Medicare Tax or Net Investment Income Tax; or they prefer the most accurate withholding for multiple job situations.

Step 3.

Employers use the amount on this line as an annual reduction in the amount of withholding. Employers should use the amount that the employee entered as the total in Step 3 of Form W-4 even if it is not equal to the sum of any amounts entered on the left in Step 3 because the total may take into account other tax credits. If the Step 3 total is blank, but there are amounts entered in Step 3(a) or 3(b), the employer may ask the employee if leaving the line blank was intentional.

Steps 4(a) and 4(b).

Employers increase the annual amount of wages subject to income tax withholding by the annual amount shown in Step 4(a) and reduce the annual amount of wages subject to income tax withholding by the annual amount shown in Step 4(b).

Step 4(c).

Employers will increase withholding by the per pay period tax amount in Step 4(c).