W4 Adjustments - New Job, but On Old Job Payroll

[Demosthenes627]

Hi all,

Having some trouble with my W4s.  I just started a new job, but I’m still on payroll for the next few months with my old job because they’re paying out my accrued leave biweekly instead of as a lump sum.  Should I file my W4 with my new and old employers as if I have two jobs, or leave my W4 at my old job as-is, and file my W4 with my new job as if I only have a single job?

[MarilynG1]

Depends.  How did you fare tax-wise with the withholding from your old employer?  Do you have dependents or a working spouse?  Do you contribute to a retirement plan or HSA at work?

Since you will only have two employers for part of the year, you could do as you suggested and leave old employer as-is and file a W-4 with new employer as if one employer.

TurboTax has a W-4 Calculator and the IRS has a Tax Withholding Estimator that can help you.

[Demosthenes627]

Hi!

To answer your questions: I wound up getting a decent refund (or will be) on my 2020 and 2021 taxes, no dependents or spouse, and I currently still contribute to a pension and 401k at my old job and am about to enroll in a 401k at my new job.

Since the overlap is only about 2 months, it may just be worth filing the new W4 as if it’s my sole job, unless you see something up there that hints otherwise.

[JohnB5677]

You do not have to provide the W-4 to the old employer.  The issue will be having the proper amount withheld from the new job.  

• You should calculate your expected earnings from your old job. 
  • This will include any additional income you will get in the next couple of months.
  • Enter that number on the W-4 on Step 4 line 4a.
• Present the completed form to your new employer.

If you do not provide the second employer with the W-4, the payroll department will start the withholding process from the beginning.  That means they will not take taxes for the standard deduction and will start taxing at the lowest income percentage.