Form W-4
Definition
The IRS form on which a US employee tells their employer how much federal income tax to withhold, reflecting filing status, dependents, multiple jobs and other adjustments. Employees should refile after life or income changes so withholding stays close to actual liability.
Related Terms in Payroll
PAYE
Pay As You Earn, the UK system under which employers deduct income tax and National Insurance from wages and report them to HMRC in real time on or before each payday. Tax codes issued by HMRC determine how much is withheld for each employee.
PAYG
Australias Pay As You Go arrangements. PAYG withholding is tax an employer withholds from employee wages and remits to the ATO; PAYG instalments are periodic prepayments a business or individual makes against its own expected income tax.
Single Touch Payroll (STP)
The Australian regime requiring employers to report salary, tax withheld and superannuation to the ATO electronically each time they run payroll, rather than in an annual summary. Employees see the reported figures through their myGov income statement.
Payroll Liabilities
Amounts owed as a result of running payroll but not yet paid out: net wages, income tax withheld, social-security and pension contributions, and any garnishments. They are liabilities held on behalf of employees and agencies, not business expenses in their own right.
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