Collect federal Form W-4 plus the California, New York, or New Jersey certificate named in that state agency guide.
Key Takeaways
-
Federal Form W-4 is the mandatory employee certificate for federal withholding, as required by the Internal Revenue Service. According to Internal Revenue Service, you must have the employee complete this specific form when you hire them. This federal requirement applies regardless of the state where the employee works.
-
New York State requires a separate certificate for state and local withholding. According to New York Department of Taxation and Finance, Form IT-2104 is completed by the employee and given to the employer to instruct how much New York State, New York City, and Yonkers tax to withhold. The employee provides this form to direct the employer’s remittance to the New York State Tax Department.
-
New Jersey uses its own certificate for state withholding purposes. According to New Jersey Division of Taxation, employees should complete an Employee’s Withholding Allowance Certificate (Form NJ-W4) and give it to their employer to declare withholding information for New Jersey purposes. This form is distinct from the federal certificate and addresses state-specific declarations.
When you hire an employee, you must have the employee complete a Form W-4, Employee's Withholding Certificate, according to Internal Revenue Service.
Collect the federal certificate and identify the state form
The federal requirement begins with the employee completing the Form W-4, Employee's Withholding Certificate, according to Internal Revenue Service. This document serves as the primary source for calculating federal income tax deductions from the employee's pay. It is not a universal instruction to collect all four forms discussed in this guide; rather, it is the mandatory federal component that must accompany the specific state form applicable to the employee's jurisdiction.
The Form W-4 tells you the employee's filing status, multiple jobs adjustments, amount of credits, amount of other income, amount of deductions, and any additional amount to withhold from each paycheck to use to compute the amount of federal income tax to deduct and withhold from the employee's pay, according to Internal Revenue Service. These fields are specific to federal tax computation and do not replace the need for state-specific withholding instructions. For a recruiter or small staffing team, the critical task is to recognize that the federal certificate does not cover state withholding requirements. You must identify the relevant state agency’s guide to determine which additional state form is required for the new employee.
What the federal certificate supplies and how revisions take effect
The Form W-4 fields provide the necessary inputs for payroll to calculate the correct federal deduction amount for each pay period. The form does not serve as a tax return or a calculation of total annual tax liability; it strictly supplies the variables required for the withholding computation.
If an employee fails to give you a properly completed Form W-4, you must withhold federal income taxes as if the employee is single or married filing separately with no other entries on step 2, 3, or 4 of the Form W-4, according to Internal Revenue Service. This invalid form scenario triggers a specific withholding method that ignores any other potential adjustments the employee might have intended to make. Payroll should treat the absence of a valid form as a directive to apply these specific single or married filing separately conditions without additional step entries.
When an employee submits an updated certificate, the timeline for implementation is fixed. If you receive a revised Form W-4 from an employee, you must put it into effect no later than the start of the first payroll period ending on or after the 30th day from the date you received the revised Form W-4, according to Internal Revenue Service. This 30-day window defines the maximum delay allowed before the new withholding amounts apply to the employee's paycheck. Payroll teams should track the date you received any revised form to ensure the change occurs within this mandated period.
The requirement to honor a revised form is not absolute. You must honor the request unless the situations described below in the sections Invalid Form W-4 and Lock-in letters apply, according to Internal Revenue Service. Reviewing these specific exception categories is necessary before processing any revised certificate to ensure compliance with the stated limitations.
New York's separate certificate and allowance rules
New York requires a distinct withholding certificate separate from the federal paperwork. Form IT-2104 is completed by you, as an employee, and given to your employer to instruct them how much New York State (and New York City and Yonkers) tax to withhold from your pay and send to the New York State Tax Department on your behalf, according to New York Department of Taxation and Finance.
If an employee submits a federal Form W-4 to the employer for tax year 2020 or later but does not file New York State Form IT-2104, the employer may use zero as the number of allowances, according to New York Department of Taxation and Finance. Payroll teams should verify that the IT-2104 is present in the onboarding packet before processing the first paycheck to avoid applying this zero-allowance standard unintentionally.
Employees holding multiple jobs must file a separate IT-2104 certificate with each of their employers, according to New York Department of Taxation and Finance. This requirement ensures each employer withholds based on the specific instructions provided for that particular job. If an employee claims more than 14 allowances on the Form IT-2104, the employer must send a copy of the form to the New York State Tax Department, according to New York Department of Taxation and Finance. This submission rule creates an additional administrative step for payroll when high allowance counts are claimed, distinct from the standard retention of the form in the employee file.
Route the completed IT-2104 to payroll with the federal Form W-4. Confirm whether the employee claims more than 14 allowances to trigger the state department copy requirement. Verify if the employee has other jobs to ensure separate certificates are on file for each employer. Do not calculate tax or choose filing status; rely on the employee’s completed entries in the state form.
Filled reference table of four publishers and their withholding forms
The table below lists the specific withholding forms associated with each agency.
| Publisher | Withholding Form |
|---|---|
| Internal Revenue Service | Form W-4, Employee's Withholding Certificate |
| New York Department of Taxation and Finance | Form IT-2104 |
| New Jersey Division of Taxation | Employee’s Withholding Allowance Certificate (Form NJ-W4) |
| California Employment Development Department | Employee’s Withholding Allowance Certificate (DE 4) |
Employees should complete an Employee’s Withholding Allowance Certificate (Form NJ-W4) and give it to their employer to declare withholding information for New Jersey purposes, according to New Jersey Division of Taxation. New hires and existing employees making changes to their withholdings must submit both the Form W-4 and the Employee’s Withholding Allowance Certificate (DE 4) (PDF), according to California Employment Development Department.
California and New Jersey need their own form decisions
California and New Jersey each require a distinct state withholding certificate in addition to the federal Form W-4.
In California, if an employee does not give you a properly completed state DE 4, you must withhold state income taxes from the employee’s wages, as if the employee were single and claiming zero withholding allowances according to California Employment Development Department. This rule applies specifically to the state DE 4 form, not the federal W-4. Additionally, employees who submitted a Form W-4 before 2020 are not required to submit a new form if they have no changes to their withholding allowances according to California Employment Development Department.
In New Jersey, employers must furnish Form NJ-W4 to their employees and withhold New Jersey Income Tax at the rate selected according to New Jersey Division of Taxation. The agency also specifies that any employee who claims to be exempt from New Jersey withholding, because their income is below the minimum filing threshold, must submit a new form every year according to New Jersey Division of Taxation. This annual resubmission requirement applies only to employees claiming exemption based on income below the minimum filing threshold. It does not apply to employees who are not exempt or who claim standard allowances.
Illustrative example of a revised certificate
A new employee works a single job in a single state. You collect 1 federal Form W-4 and 1 state certificate. The W-4 lists filing status, multiple jobs adjustments, credits, other income, deductions, and an additional withholding amount. With no other entries on step 2, step 3, or step 4, withhold federal income tax as if the employee is single or married filing separately.
You receive a revised Form W-4 today. Put it into effect no later than the start of the first payroll period ending on or after day 30. For a New York job with no IT-2104 for tax year 2020 or later, use 0 allowances. A claim of more than 14 allowances means a copy of IT-2104 goes to the New York State Tax Department. Another job needs its own IT-2104.
Send matching forms to payroll today
Today, match the work location to Form W-4 and the state certificate, then send that packet to payroll. For state-specific forms, identify the applicable agency guide for the employee’s work location. Do not assume the federal form covers state withholding; each state may require a separate certificate.
Name the jurisdiction where the employee performs their primary work duties. Use the specific form name required by that jurisdiction’s agency guide. This step ensures the payroll team has the correct documentation to process the first paycheck accurately. See First payday rules for 4 state payment schedules, Minor-hire paperwork checks across 4 states, and Sick time rules for new hires in 4 states. If the employee works in multiple states, consult the specific rules for each jurisdiction to determine which forms are required. The federal Form W-4 is mandatory for all employees, according to Internal Revenue Service, but state forms vary by location.
New-hire withholding forms FAQ
Does federal Form W-4 replace California DE 4?
No. California requires its own withholding form for state income tax purposes, distinct from the federal certificate. The federal Form W-4 computes federal income tax deductions, while California DE 4 handles state-specific withholding. You must collect both forms for a new hire in California.
What happens if the federal form is not properly completed?
If an employee fails to give you a properly completed Form W-4, you must withhold federal income taxes as if the employee is single or married filing separately. In this scenario, you use no other entries on step 2, 3, or 4 of the Form W-4, according to Internal Revenue Service. This default applies only to the federal calculation.
How soon must a revised federal form take effect?
Put a revised Form W-4 into effect no later than the start of the first payroll period ending on or after the 30th day from the date you received the revised Form W-4, according to Internal Revenue Service.
When must a New Jersey employee claiming exemption give a new form?
Any employee who claims to be exempt from New Jersey withholding because their income is below the minimum filing threshold must submit a new form every year, according to New Jersey Division of Taxation. This annual requirement applies specifically to those claiming exemption based on income levels.
Can New York IT-2104 use the federal form's old allowance fields?
No. If you submit a federal Form W-4 to your employer for tax year 2020 or later, and do not file New York State Form IT-2104, your employer may use zero as your number of allowances, according to New York Department of Taxation and Finance. The federal form does not provide the specific state allowance data required for New York withholding.