Form W-4S: Request for Federal Income Tax Withholding from Sick Pay
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Form W-4S: Request for Federal Income Tax Withholding from Sick Pay

This article explains how to use Form W-4S to request to have federal income tax withheld from sick pay payments received from a third-party payer. Learn how to determine the amount to be withheld and how to change withholding for future payments.

What is Form W-4S?

Form W-4S is a form that you should give to the third-party payer of your sick pay – such as an insurance company – if you want federal income tax to be withheld from your payments. You can enter the amount of tax you would like withheld from each payment (at least $4 per day, $20 per week, or $88 per month). You must sign the form to make it valid, and you can change or revoke your withholding by giving a new form or written notice to the payer. At the end of the year, you will receive a Form W-2 reporting the taxable sick pay paid and federal income tax withheld during the year.

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IRS Form W-4S – Who Needs to Fill It Out?

IRS Form W-4S is necessary for those who want to have federal income tax withheld from their sick pay payments made by a third-party payer such as an insurance company. The amount to be withheld must be expressed in whole dollars and should not reduce net deductions to less than $10. To avoid a penalty, users should make sure to have enough tax withheld or make estimated tax payments. After the end of the year, the user will receive a Form W-2 displaying the amount of taxable sick pay and federal income tax withheld, and the form will remain in effect until changed or revoked.

Step-by-Step: Form W-4S Instructions For Filling Out the Document

Form W-4S must be provided to a third-party payer of sick pay, such as an insurance company, if federal income tax need to be withheld from the payments. The form requires the information in order to comply with Internal Revenue Code sections 3402(o) and 6109. The amount to be withheld must be in whole dollars (no cents), at least $4 per day, $20 per week, or $88 per month, and not reducing the payment to less than $10. The withholding will be in proportion to regular full payment of sick pay. Sign the form when done. After the end of the year, Form W-2 will be provided, detailing the taxable sick pay paid and federal income tax withheld. This form will remain in effect until changed or revoked by filling out new Forms or written notice.

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Below, we present a table that will help you understand how to fill out Form W-4S.

Information Required for Form W-4S Details
Name Individual’s full name
Address Current mailing address
Social Security Number Unique identification number
Amount to Withhold Must be in whole dollars (no cents), at least $4 per day, $20 per week, or $88 per month, and not reducing the payment to less than $10
Withholding Proportion Withholding will be in proportion to regular full payment of sick pay
Signature Sign the form when done
Form Expiration This form will remain in effect until changed or revoked by filling out new Forms or written notice
Year-End Reporting After the end of the year, Form W-4S will be provided, detailing the taxable sick pay paid and federal income tax withheld
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Do You Need to File Form W-4S Each Year?

No, you are not required to file a Form W-4S each year. However, if you choose to have federal income tax withheld from your sick pay then Form W-4S is necessary. You must provide the requested information and sign the form. The amount withheld must be in whole dollars and must be at least $4 per day, $20 per week, or $88 per month depending on your payroll period. You may change this amount or revoke the Form W-4S at any time by giving a new form or written notice to the payer. At the end of the year, you’ll receive a Form W-2 to report the taxable and withheld amounts to the IRS. To avoid a penalty, make sure that you have enough tax withheld or make estimated tax payments.

Download the Official IRS Form W-4S PDF

On the official IRS website, you will find a link to download Form W-4S. However, to make it easier for you, we are providing the link in our article, which comes directly from the official irs.gov website! Click to download: Form W-4S

Sources:

https://www.irs.gov/forms-pubs/about-form-w-4s

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