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empteevessel t1_ja3z3ih wrote

This is helpful. My part time job was off the books since I started almost two years ago but now they’re putting everyone on as W2 next month. Should I just change the withholding from 1 to 2 for federal and state? Or is it better to have a specific amount extra taken out per check like you do? I’ve never had a part time job on the books while also working a full time job with normal payroll taxes.

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ItsAllJustMalarkey t1_ja420qz wrote

The W-4 system has changed. The “0, 1, or 2” system is no longer how its done. This changed in either 2019 or 2020.

Download the 2023 W-4 form and read through it. You’re now required to indicate the actual dollar amount you want withheld, and luckily there is a super confusing worksheet you can use.

Its so confusing that most people I onboard just leave it blank and sort things out at the end of the year when they file.

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empteevessel t1_ja42tsv wrote

Thanks for this info, I had no idea there’s a new system now.

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ItsAllJustMalarkey t1_ja43kkq wrote

Just our government making things unnecessarily complicated. We all had the old system down… so of course they had to shake it up.

HR isnt legally allowed to help you fill out the form either. I always tell people to just put whatever, or leave it blank if they want. And then give them an extra form to take home, and bring to their CPA. You can resubmit a new one and negate the old one whenever you want.

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weluckyfew OP t1_ja41860 wrote

IIRC changing the withholding to two would actually get less taken out in taxes - it would assume you have a dependent to claim on your taxes.

I just go with a set amount. I think if your income is fairly stable from that job you can just double whatever is being withheld now for federal taxes. But maybe someone who knows better will comment with a more foolproof way to do it.

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ItsAllJustMalarkey t1_ja42b9v wrote

FYI, the “0” “1” “2” system is outdated. They changed the forms in either 2019 or 2020. If your employer is still using the old form then it might not be translating properly when they do payroll.

Download the 2023 W-4 form. It has 3 pages of confusing AF instructions.

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weluckyfew OP t1_ja45t8g wrote

Good to know - I just have the extra money taken out and treat it like a forced savings account. Sure, it doesn't get interest, but then again at most I'm only overpaying by a few hundred bucks so it wouldn't get me much anyway.

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empteevessel t1_ja42pkg wrote

Ah see this shows how long it’s been since I even looked at any withholding info. Thanks!

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