An employee must complete Internal Revenue Service (IRS) Form W-4 so the employer can withhold the correct amount of federal income tax from the employee’s pay. If too little is withheld, the employee will generally owe tax when filing their tax return, and may owe a penalty. If too much is withheld, the employee will generally be due a refund. Form W-4 is also known as the Employee’s Withholding Certificate or the Employee’s Withholding Allowance Certificate.

An employee should complete a new Form W-4 when changes to their personal or financial situation would change the entries on the form. An employee may claim exemption from withholding if the employee meets both of the following conditions: (1) the employee had no federal income tax liability in the current year and (2) the employee expects to have no federal income tax liability in the following year.

A nonresident alien subject to wage withholding must give their employer a completed Form W-4 to enable the employer to calculate the amount of income tax to withhold. In completing the form, nonresident aliens performing services in the U.S. should use the following instructions instead of the instructions on Form W-4:

• Check only Single marital status on line 3 (regardless of actual marital status).

• Claim only one withholding allowance on line 5, unless the employee is a resident of Canada, Mexico, South Korea, a U.S. national, or a student or business apprentice from India.

• Do not claim Exempt withholding status on line 7.

• Write Nonresident Alien or NRA above the dotted line on line 6 of Form W-4.

In Ohio, as in all states, employees are required to complete IRS Form W-4 to inform their employers of the amount of federal income tax to withhold from their wages. The form helps ensure that the correct tax amount is withheld, aligning with the employee's tax liability. If an employee's personal or financial circumstances change, they should submit a new Form W-4 to reflect these changes. Employees who meet specific criteria can claim exemption from withholding. Nonresident aliens in the U.S. must follow special instructions when completing Form W-4, such as claiming only 'Single' marital status and one withholding allowance, with exceptions for residents of certain countries and individuals with specific statuses. They cannot claim exempt status and must indicate their nonresident status on the form. Failure to accurately complete Form W-4 can result in underpayment or overpayment of taxes, potentially leading to owing taxes and penalties or receiving a refund when filing a tax return.