Since my company does not offer W4 adjustments by percentage, but rather $$ amount, is there a formula we can use to ask my company to apply the right withholding so there are no nasty surprises later?

The W-4 form (seen here) asks for four key pieces of information:

 

• Your filing status (Single, Married Filing Jointly, etc.)
• Number of dependents
• Other income and deductions
• Additional withholding amount (in dollars for each paycheck)

When you provide a W-4 to your employer, they update their payroll system based on the information you provide on the W-4. The easiest way to calculate/fill out the W-4 is to utilize a withholding calculator. These calculators require information regarding all sources of income for the year for you (and your spouse if applicable), and will generate a W-4 based on your overall estimated income for the year.

It's best to revisit these calculators anytime you have a change in income or any of the information you utilize to complete the calculators (dependents, new job, investment income, etc.).

Here are links to a few W-4 calculators and an article for your reference:

• IRS Withholding Estimator
• TurboTax W-4 Calculator
• Form W-4 and Your Take Home Pay

Thank you for your question and for joining us today!