TAP 04-020

W-4 Form Percentage Option

Statement of Issue:

The Form W-4, “Employee’s Withholding Allowance Certificate” does not provide for a choice between dollar amount and percentage increase on line 6 under the heading “Additional Withholding”.

Proposal:

1) Change line 6 on the W-4 form to indicate that additional withholding can be expressed in dollar amounts or as a percentage of the paycheck.

(2) Change appropriate instruction sheet/page and related publications including Treasury/Internal Revenue Service (IRS) Regulations regarding W-4.

Response Notes:

Margie Kinney from the Office of Taxpayer Burden requested that this proposal be part of the W-4 Form project undertaken by the combined committees of Areas 3, 4, and Payroll.