Is it time to update your Form W-4?

Is it time to update your Form W-4?

The Payroll Department reminds employees that a new Form W-4, Employee's Withholding Allowance Certificate, can be completed at any time.

The information from this form is used by Payroll in determining your federal and state income taxes withheld from your paychecks. A Form W-4 remains in effect until an employee provides Payroll with a new one. Generally, employees are not required to file a new form each year.  

Employees are encouraged to file an updated Form W-4 if withholding allowances have changed or will change in the next year. If employees expect to owe more taxes or receive a large refund when filing 2006 tax returns, they may consider completing a new form. Current withholding allowances are printed on pay stubs and also are available on Murphy Online under Employee Services.  

The IRS Web site has a withholding calculator that can help in determining how many withholding allowances to claim. Employees also can ask their tax adviser for assistance with completing their Form W-4 at the time their 2006 tax returns are being prepared. 

Employees who claim that they are exempt from federal income tax withholding must complete a new W-4 form by Feb. 15, 2007, to have that exemption continue into 2007.

Employees who are not residents of Minnesota also are required to complete a new MW-R form by Feb. 28, 2007, to continue exemption from Minnesota income tax withholding in 2007.

The Form W-4 can be accessed from the Payroll Web site. Employees should send the completed and signed form to Payroll at Mail # AQU 221.