The Advanced W-4 panel
Copy Step 2 and Step 4 from the employee's Form W-4, or mark them exempt from federal tax, Social Security or Medicare.
Marital status and dependents on the Employee step are enough for most stubs. If the employee's Form W-4 has more filled in, open Advanced W-4 on the same step. Leave it closed and we use the standard withholding.
- Step 2: multiple jobs or spouse works. Uses the higher withholding table, so more federal tax is withheld.
- 4(a) Other income (yearly). Income without withholding, such as interest. Raises withholding.
- 4(b) Deductions (yearly). Deductions beyond the standard deduction. Lowers withholding.
- 4(c) Extra withholding (per paycheck). Added to federal tax on every stub.
- Exempt from federal income tax, Social Security or Medicare. Ticking one sets that row to zero. Use it only when the employee really is exempt, for example some students or nonresident workers for FICA.
| W-4 entry | Federal tax |
|---|---|
| Standard (panel closed) | $156.15 |
| 4(c) extra withholding $25.00 | $181.15 |
| Step 2 ticked | $270.19 |
The calculation follows IRS Publication 15-T, the annual percentage method for 2020 and later W-4s. Need the form itself? Make one free with the W-4 builder.
Still stuck? Email support@paystub.biz or see the FAQ.