Many organizations and tax-payers use IRS Forms to report information on finance to the IRS in United States. It helps in reporting income, calculating taxes, disclosing information required by the IRC (Internal Revenue Code). Among 800 various forms, W-4 is used to check the proper deduction from the user’s wage.
The form is retained by a user and not mailed to the Internal Revenue Service. Tax withholding will depend actually on the personal situation of the employee. During the filing of W-4, the employee counts the W-4 allowance claimed, depending on the expected tax to be filed that year. On withholding, interest is not paid but penalties can be taken if required. If this process is not followed then the alternative of sending quarterly payment to IRS is done. The quarterly payment system is done when the employee have additional income on his account. IRS has many other forms for different things such as pension and etc.
The main drawback of this tool is sometime extra payment is being deducted from the wage in the name of tax. While entering the data in this application, you have to mention some personal information like marriage date, no. of children etc. This has to be done to keep a mandatory record of the user into IRS Form W-4 so that whenever it is needed, it can be utilized.