Introduction

Abstract

This document provides guidance on the withholding of income taxes using the Onboard software applications.

U.S. companies use two types of forms to manage the withholding of income taxes:

• Form W-4 (Employee's Withholding Allowance Certificate). U. S. federal form (Internal Revenue Service). Employers use the form to ensure the correct amount of federal income tax is withheld from a hire's pay.

• State tax withholding forms. U.S. and Canada state tax withholding forms. Employers use the forms to ensure the correct amount of state/local income tax is withheld from a hire's pay. Note: Not every state uses a state tax withholding form; some states use Form W-4 as their state withholding form; and some states use their own version of Form W-4 (and can have multiple forms).

There are two Onboard applications that work together for the withholding of income taxes:

• Onboard. Used by new hires to complete/sign/submit:

  • Form W-4. At the end of the task, there is a Form W-4 PDF.

  • Appropriate state/local tax withholding form. At the end of the task, there is a tax form PDF.

• Onboard Manager. Used by onboarding managers to:

  • Review the new hire's completed/signed/submitted Form W-4 PDF and tax form PDFs.

  • Initiate an email to the new hire if there is a discrepancy that needs correction. The hire (using Onboard) can redo a W-4 or state tax form.