This webinar takes a detailed look at the 2026 IRS Form W-4 and what payroll professionals can expect in the new year. With updates including new wording changes, compliance requirements, and evolving electronic processing standards, it's crucial to understand how to accurately complete and manage this foundational form. We’ll dive into the specific challenges of handling W-4s for non-resident aliens, navigating state-specific withholding forms, and maintaining proper record retention procedures. You’ll also learn best practices to streamline your payroll processes and improve internal compliance.

The Form W-4 is not just a routine document—it's essential to ensuring accurate federal income tax withholding and supporting your organization's overall payroll accuracy. Mishandling or misinterpreting this form can lead to costly compliance violations, employee dissatisfaction, and time-consuming corrections. This session will address frequently asked questions encountered by payroll departments, including form validity, Line 2c implications, and Step 4 requirements. With many states now requiring their own forms and rejecting the federal version, payroll professionals must be equipped with the latest knowledge and tools to stay compliant in both federal and state contexts.

This webinar is designed to give payroll professionals the confidence and tools to handle the updated Form W-4 accurately and efficiently. By attending, you will enhance your ability to maintain compliance and avoid the costly repercussions of errors or outdated practices.

Arizona Form A-4: Arizona law requires your employer to withhold Arizona incometax from your wages for work done in Arizona. The amountwithheld is applied to your Arizona income tax due when youfile your tax return. The amount withheld is a percentage ofyour gross taxable wages from every paycheck. You mayalso have your employer withhold an extra amount from eachpaycheck.

Audit: A formal examination of an organization's or individual's accounts or financial situation

California DE4 Form: This certificate, DE 4, is for California Personal Income Tax (PIT) withholding purposes only. The DE4 is used to compute the amount of taxes to be withheld from your wages, by your employer, to accurately reflect your state tax withholding obligation.

Deductions Worksheet Step 4(b): Fill out this section if you expect to claim deductions (such as itemized deductions) other than the standard deduction and want to reduce your withholding. To estimate your 2020 deductions use the Deductions Worksheet provided on page three of the W-4 form.

Dependent: A dependent is a person other than the taxpayer or spouse who entitles the taxpayer to claim a dependency exemption. Each dependency exemption decreases income subject to tax by the exemption amount. Your dependent must be a U.S. citizen, a national, a resident alien of the U.S., or a resident of Canada or Mexico. A dependent can be claimed by one and only one taxpayer in any given year.

Exempt : Exempt employee is a term that refers to a category of employees set out in the Fair Labor Standards Act. They do not receive overtime pay, nor do they qualify for the minimum wage

Federal Income Tax (FIT): Federal income tax is withheld from each W-2 employee’s paychecks throughout a tax year. FIT tax pays for federal expenses like defense, education, transportation, energy, and interest on the federal debt.

Federal Insurance Contributions Act (FICA): The Federal Insurance Contributions Act is a United States federal payroll contribution directed towards both employees and employers to fund Social Security and Medicare—federal programs that provide benefits for retirees, people with disabilities, and children of deceased workers.

Form 8233: IRS Form 8233 must be completed when a non U.S. citizen is claiming tax treaty exemption from income taxes for income received for services provided as an independent contractor.

Form W-4: Form W-4 (otherwise known as the "Employee's Withholding Allowance Certificate") is an Internal Revenue Service (IRS) tax form completed by an employee in the United States to indicate his or her tax situation (exemptions, status, etc.) to the employer.

Form W-4P: Form W-4P, officially known as the "Withholding Certificate for Periodic Pension or Annuity Payments," is an IRS form used by recipients of certain retirement and deferred compensation payments to inform the payer (like a pension fund or annuity provider) how much federal income tax to withhold from their payments.

Form W-4S: Give Form W-4S to the third-party payer of your sick pay, such as an insurance company, if you want federal income tax withheld from the payments.

Form W-4V: Form W-4V, Voluntary Withholding Request, is an IRS form used to request that federal income tax be withheld from certain government payments. It allows recipients of certain government payments to voluntarily have federal income tax withheld. These payments can include unemployment compensation, Social Security benefits, Commodity Credit Corporation loans, certain crop disaster payments, and dividends from Alaska Native Corporations.

Multiple Jobs Worksheet Step2(b): If you choose the option in Step 2(b) on Form W-4, complete this worksheet (which calculates the total extra tax for all jobs) on only ONE Form W-4. The IRS advises that the worksheet should only be completed on one W-4 form and the result should be entered for the highest paying job only, to end up with the most accurate withholding.

Nonresident Alien (NRA): This income is taxed at a flat 30% rate, unless a tax treaty specifies a lower rate. Nonresident aliens must file and pay any tax due using Form 1040NR, U.S. Nonresident Alien Income Tax Return or Form 1040NR-EZ, U.S. Income Tax Return for Certain Nonresident Aliens with No Dependents.

Notice 1392: This Notice modifies the instructions to Form W-4 to take into account the restriction on a nonresident alien's filing status, the restriction on claiming the standard deduction, and the restriction on claiming tax credits and deductions for certain Nonresident aliens.

One Big Beautiful Bill Act (OBBB): The One Big Beautiful Bill Act, or the Big Beautiful Bill, is a U.S. federal statute passed by the 119th United States Congress containing tax and spending policies that form the core of President Donald Trump's second-term agenda. The bill was signed into law by President Trump on July 4, 2025.

Publication 15-T: Employers use Publication 15-T to figure the amount of federal income tax to withhold from their employees' wages.

Reciprocal Agreements: A reciprocal agreement, also called reciprocity, is an agreement between two states that allows residents of one state to request exemption from tax withholding in the other (reciprocal) state. This can save you the trouble of having to file multiple state returns.

Resident Alien : A resident alien is a foreign person who is a permanent resident of the country in which he or she resides but does not have citizenship. To fall under this classification in the United States, a person needs to either have a current green card or have had one in the previous calendar year.

Tax Cuts and Jobs Act: The Act to provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018, Pub.L. 115–97, is a congressional revenue act of the United States originally introduced in Congress as the Tax Cuts and Jobs Act, that amended the Internal Revenue Code of 1986.

Wage: A fixed regular payment, typically paid on a daily or weekly basis, made by an employer to an employee, especially to a manual or unskilled worker.