Form W-4 and Form W-2

Access this expert-led webinar instantly, available anytime on-demand.

4.6
Included in All-Access Membership
Live Webinar - no upcoming date
Customer Satisfaction Guarantee Learn with confidence. If you're not happy, we'll make it right. That's our guarantee.

Purchase Options

Select an attendee quantity to add to cart.

Recorded Webinar Only

$219.00
or

All Access Membership

The Aurora All Access Membership is designed to provide you with the training that you want when you want it. You will have 100% access to every live webinar, on demand webinar, professional alert, and podcast that Aurora Training Advantage offers with no additional cost.

Learn More About Our All Access Membership
$599.00
All Access Membership

This webinar takes a detailed look at the 2026 IRS Form W-4 and what payroll professionals can expect in the new year. With updates including new wording changes, compliance requirements, and evolving electronic processing standards, it's crucial to understand how to accurately complete and manage this foundational form. We’ll dive into the specific challenges of handling W-4s for non-resident aliens, navigating state-specific withholding forms, and maintaining proper record retention procedures. You’ll also learn best practices to streamline your payroll processes and improve internal compliance.

The Form W-4 is not just a routine document—it's essential to ensuring accurate federal income tax withholding and supporting your organization's overall payroll accuracy. Mishandling or misinterpreting this form can lead to costly compliance violations, employee dissatisfaction, and time-consuming corrections. This session will address frequently asked questions encountered by payroll departments, including form validity, Line 2c implications, and Step 4 requirements. With many states now requiring their own forms and rejecting the federal version, payroll professionals must be equipped with the latest knowledge and tools to stay compliant in both federal and state contexts.

Topics Covered Include:
  • In-depth review of the 2025 Form W-4
  • Overview of IRS Publication 15-T and employer instructions
  • Practical examples of calculating income tax withholding
  • Guidance on handling prior versions of Form W-4
  • Best practices for electronic processing and multi-state compliance
Your Benefits For Attending:
  • Learn how to correctly use the updated 2025 Form W-4 and understand the new terminology and structure
  • Understand how to interpret and apply the employer instructions provided in IRS Publication 15-T
  • Discover the correct methods for calculating income tax withholding using both current and prior versions of Form W-4
  • Gain clarity on handling non-resident alien employee forms and state-specific W-4 equivalents
  • Explore best practices for record retention and electronic form processing to improve workflow efficiency

This webinar is designed to give payroll professionals the confidence and tools to handle the updated Form W-4 accurately and efficiently. By attending, you will enhance your ability to maintain compliance and avoid the costly repercussions of errors or outdated practices.

Who Can Benefit:
  • Payroll Executives, Managers, Administrators, Professionals, Practitioners, and Entry-Level Personnel
  • Human Resources Executives, Managers, and Administrators
  • Accounting Staff and Business Owners
  • Executive Officers, Operations Managers, and Department Heads
  • Legal Professionals and Lawmakers involved in payroll compliance
Level: Beginner
Format: Live webcast
Instructional Method: Group Internet Based
NASBA Field of Study: Accounting
Program Prerequisites: None
Advance Preparation: None
  1. Introduction
  2. Our Focus For Today 00:00:58
  3. Section 1: Basic Review of Form W-4 for 2026 00:02:37
  4. Purpose and Types of Forms - IRS Form W-4 00:02:43
  5. Purpose and Types of Forms - Form W-4S, W-4P, and W-4V 00:03:37
  6. Form W-4 for 2026 00:04:24
  7. Five Steps to Completion 00:08:47
  8. Five Steps to Completion - Steps 1-5 00:09:13
  9. Worksheets 00:10:41
  10. Multiple Jobs Household 00:12:09
  11. Multiple Jobs Household - Multiple Jobs Worksheet Step 2(b) 00:13:09
  12. Multiple Jobs Household  - Tax Table 00:13:49
  13. Worksheets - Worksheet Step 4(b) - Deductions Worksheet 00:15:10
  14. No Form? 00:16:31
  15. Claiming Exempt 00:20:17
  16. Nonresident Aliens 00:22:29
  17. Claiming Exempt By Treaty 00:23:29
  18. Section 2 - Step-by-Step Overview of the Form 00:24:25
  19. Step 1: Enter Personal Information 00:24:32
  20. Step 1: Enter Personal Information (Cont’d) 00:29:57
  21. Notice 1392 00:30:32
  22. Step 2:Multiple Jobs/Spouse Works 00:30:48
  23. Step 2:Multiple Jobs/Spouse Works (Cont’d) 00:33:20
  24. Step 3: Claim Dependents 00:34:05
  25. Step 4: Optional: Other Adjustments 00:36:31
  26. Step 4(a): Other Income 00:37:09
  27. Step 4(b): Deductions 00:41:38
  28. Step 4(b): Deductions Example 00:43:40
  29. Step 4(c): Extra Withholding 00:43:40
  30. Step 5: Sign Here 00:46:32
  31. Electronic Forms W-4 00:50:04
  32. Electronic Forms W-4 Cont’d 00:50:49
  33. Section 3: Publication 15-T 00:52:30
  34. Publication 15-T 00:53:31
  35. Publication 15-T (Cont’d) 00:52:58
  36. Employer Worksheets 00:53:17
  37. Employer Worksheet #1A 00:53:39
  38. Employer Worksheet #1B 00:53:55
  39. Employer Worksheet #2 00:54:05
  40. Employer Worksheet #3 00:56:27
  41. Employer Worksheet #4 00:58:39
  42. Employer Worksheet #5 00:56:48
  43. Section 4: Calculating Withholding 00:57:10
  44. Example 1 00:57:14
  45. Example 1 Tax Table 00:58:11
  46. Example 1 - Employer Worksheet 00:58:43
  47. Example 2 01:03:41
  48. Example 2 Employer Worksheet 01:04:03
  49. Example 3 Form W-4 01:05:57
  50. Example 3 Tax Table 01:06:17
  51. Recordkeeping 01:07:17
  52. Retaining Form W-4-Federal 01:12:57
  53. Employee Withholding Certificates - The States 01:13:23
  54. Examples 01:14:18
  55. Form W-4 Equivalents Map 01:17:03
  56. Form W-4 State Record Retention Map 01:22:29
  57. Example of Exempt Form for Military Spouse 01:26:05
  58. Reciprocal Agreements - For Example 01:29:00
  59. Example of Nonresident Form-CT 01:30:38
  60. So What Do We Need for a Multistate Employee? 01:31:09
  61. Final Questions 01:36:43
  62. Presentation Closing 01:50:57
  • Vicki M. Lambert, CPP

    Vicki M. Lambert, CPP

    Vicki M. Lambert, CPP, is President and Academic Director of The Payroll Advisor™, a firm specializing in payroll education and training. The company offers a payroll news service which keeps payroll professionals up-to-date on the latest rules and regulations.With over 35 years of hands-on experi [...]

    View Full Profile

CPE Credit

Continuing Professional Education

Aurora Training Advantage is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.

For more information regarding administrative policies such as complaint and refund, and cancellation please contact our offices at 407-542-4317 or [email protected].

You must answer all questions during the webinar, view the recording completely and pass the test at the end with 70% correct answers to receive CPE credit.

HRCI Credit

Human Resource Certification Institute
Browse HRCI-approved webinars and earn recertification credits online. Live and on-demand HR training for PHR, SPHR, and GPHR recertification. Expert-led sessions from Aurora Training Advantage.

SHRM Credit

Society for Human Resource Management
Aurora Training Advantage is recognized by SHRM to offer Professional Development Credits (PDCs) for the SHRM-CPSM or SHRM-SCPSM. For more information about certification or recertification, please visit www.shrmcertification.org.

RCH Credit

American Payroll Association

Aurora Training Advantage is an approved provider through the American Payroll Association. To receive credit through the American Payroll Association for this program you MUST attend the program in its entirety.

ATAHR Credit

Aurora Training Advantage is offering continuing education points designed to recognize dedication to training and excellence in human resources.

ATATX Credit

Aurora Training Advantage is offering continuing education points designed to recognize dedication to training and excellence in accounting.

ATAPR Credit

Aurora Training Advantage is offering continuing education points designed to recognize dedication to training and excellence in payroll.
  1. Arizona Form A-4 01:14:19
  2. Audit 00:16:12, 00:49:27
  3. California DE4 Form 01:14:54
  4. Deductions Worksheet Step 4(b) 00:11:58, 00:15:10
  5. Dependent 00:09:05, 00:34:09
  6. EIN 00:48:23
  7. Exempt 00:04:41, 00:06:27, 00:20:12, 00:24:03, 00:46:46, 00:53:05, 01:28:45
  8. Federal Income Tax (FIT) 00:23:36
  9. Form 8233 00:23:50
  10. Form W-4 00:01:05, 00:02:49, 00:04:24, 00:06:49, 00:10:51, 00:13:57, 00:22:43, 00:40:22, 00:46:57, 00:50:01, 00:52:11, 01:07:45, 01:19:39
  11. Form W-4P 00:03:53
  12. Form W-4S 00:03:47
  13. Form W-4V 00:03:57
  14. Multiple Jobs Worksheet Step2(b) 00:11:52, 00:12:53
  15. Nonresident Alien (NRA) 00:22:32, 00:30:44, 00:53:02
  16. Notice 1392 00:30:33
  17. One Big Beautiful Bill Act (OBBB) 00:04:24
  18. Overtime 00:08:14
  19. Publication 15-T 00:01:22, 00:52:30
  20. Reciprocal Agreement 01:29:08
  21. Tax Cuts and Jobs Act 01:15:19
  22. Wage 00:03:09, 00:10:34, 00:52:48, 00:58:52

Arizona Form A-4: Arizona law requires your employer to withhold Arizona incometax from your wages for work done in Arizona. The amountwithheld is applied to your Arizona income tax due when youfile your tax return. The amount withheld is a percentage ofyour gross taxable wages from every paycheck. You mayalso have your employer withhold an extra amount from eachpaycheck.

Audit: A formal examination of an organization's or individual's accounts or financial situation

California DE4 Form: This certificate, DE 4, is for California Personal Income Tax (PIT) withholding purposes only. The DE4 is used to compute the amount of taxes to be withheld from your wages, by your employer, to accurately reflect your state tax withholding obligation.

Deductions Worksheet Step 4(b): Fill out this section if you expect to claim deductions (such as itemized deductions) other than the standard deduction and want to reduce your withholding. To estimate your 2020 deductions use the Deductions Worksheet provided on page three of the W-4 form.

Dependent: A dependent is a person other than the taxpayer or spouse who entitles the taxpayer to claim a dependency exemption. Each dependency exemption decreases income subject to tax by the exemption amount. Your dependent must be a U.S. citizen, a national, a resident alien of the U.S., or a resident of Canada or Mexico. A dependent can be claimed by one and only one taxpayer in any given year.

Exempt : Exempt employee is a term that refers to a category of employees set out in the Fair Labor Standards Act. They do not receive overtime pay, nor do they qualify for the minimum wage

Federal Income Tax (FIT): Federal income tax is withheld from each W-2 employee’s paychecks throughout a tax year. FIT tax pays for federal expenses like defense, education, transportation, energy, and interest on the federal debt.

Form 8233: IRS Form 8233 must be completed when a non U.S. citizen is claiming tax treaty exemption from income taxes for income received for services provided as an independent contractor.

Form W-4: Form W-4 (otherwise known as the "Employee's Withholding Allowance Certificate") is an Internal Revenue Service (IRS) tax form completed by an employee in the United States to indicate his or her tax situation (exemptions, status, etc.) to the employer.

Form W-4P: Form W-4P, officially known as the "Withholding Certificate for Periodic Pension or Annuity Payments," is an IRS form used by recipients of certain retirement and deferred compensation payments to inform the payer (like a pension fund or annuity provider) how much federal income tax to withhold from their payments.

Form W-4S: Give Form W-4S to the third-party payer of your sick pay, such as an insurance company, if you want federal income tax withheld from the payments.

Form W-4V: Form W-4V, Voluntary Withholding Request, is an IRS form used to request that federal income tax be withheld from certain government payments. It allows recipients of certain government payments to voluntarily have federal income tax withheld. These payments can include unemployment compensation, Social Security benefits, Commodity Credit Corporation loans, certain crop disaster payments, and dividends from Alaska Native Corporations.

Multiple Jobs Worksheet Step2(b): If you choose the option in Step 2(b) on Form W-4, complete this worksheet (which calculates the total extra tax for all jobs) on only ONE Form W-4. The IRS advises that the worksheet should only be completed on one W-4 form and the result should be entered for the highest paying job only, to end up with the most accurate withholding.

Nonresident Alien (NRA): This income is taxed at a flat 30% rate, unless a tax treaty specifies a lower rate. Nonresident aliens must file and pay any tax due using Form 1040NR, U.S. Nonresident Alien Income Tax Return or Form 1040NR-EZ, U.S. Income Tax Return for Certain Nonresident Aliens with No Dependents.

Notice 1392: This Notice modifies the instructions to Form W-4 to take into account the restriction on a nonresident alien's filing status, the restriction on claiming the standard deduction, and the restriction on claiming tax credits and deductions for certain Nonresident aliens.

One Big Beautiful Bill Act (OBBB): The One Big Beautiful Bill Act, or the Big Beautiful Bill, is a U.S. federal statute passed by the 119th United States Congress containing tax and spending policies that form the core of President Donald Trump's second-term agenda. The bill was signed into law by President Trump on July 4, 2025.

Overtime: Overtime is time and a half of what an employee earns for every hour worked over 40 in a workweek. The FLSA salary threshold is the minimum salary employers must pay employees for them to be exempt from overtime wages.

Publication 15-T: Employers use Publication 15-T to figure the amount of federal income tax to withhold from their employees' wages.

Reciprocal Agreements: A reciprocal agreement, also called reciprocity, is an agreement between two states that allows residents of one state to request exemption from tax withholding in the other (reciprocal) state. This can save you the trouble of having to file multiple state returns.

Resident Alien : A resident alien is a foreign person who is a permanent resident of the country in which he or she resides but does not have citizenship. To fall under this classification in the United States, a person needs to either have a current green card or have had one in the previous calendar year.

Tax Cuts and Jobs Act: The Act to provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018, Pub.L. 115–97, is a congressional revenue act of the United States originally introduced in Congress as the Tax Cuts and Jobs Act, that amended the Internal Revenue Code of 1986.

Wage: A fixed regular payment, typically paid on a daily or weekly basis, made by an employer to an employee, especially to a manual or unskilled worker.

Customer Satisfaction Guarantee
Invest in your future with confidence! Our Customer Satisfaction Guarantee eliminates all risk, letting you focus purely on mastering new skills and advancing your career. If you're not completely satisfied, we'll ensure you are. Your satisfaction is not just a promise; it's our guarantee.

Webinar Survey Overall Rating

This webinar received a total of 6 survey responses. Attendees have given an average rating of 4.6 stars out of a possible 5, reflecting the quality and value of the content presented.

Average rating

4.6 / 5
Webinar Presentation
How many of the objectives of the event were met?
4.7 Stars
How useful was the information presented at this event?
4.7 Stars
Overall, how satisfied were you with this event?
4.5 Stars
Speaker Performance
Overall, how satisfied were you with this presenter?
4.5 Stars
How closely did the presenter follow the schedule?
4.5 Stars

Reviews From Webinar Survey

Our webinars are crafted to deliver exceptional value and insight to business professionals. Below, you'll find genuine feedback from attendees.

Rosaria G.
February 13, 2026
5.0 / 5
Webinar Rating:
5.0 Stars
Speaker Rating:
5.0 Stars
Do you have any other comments, questions or concerns?
great information.
Maritza D.
February 12, 2026
4.8 / 5
Webinar Rating:
5.0 Stars
Speaker Rating:
4.5 Stars
Do you have any other comments, questions or concerns?
very helpful and excellent prestentation
Katie M.
February 12, 2026
4.2 / 5
Webinar Rating:
4.3 Stars
Speaker Rating:
4.0 Stars
Do you have any other comments, questions or concerns?
Presenter is great! Very knowledgeable!
Amanda T.
February 11, 2026
4.2 / 5
Webinar Rating:
4.0 Stars
Speaker Rating:
4.5 Stars
Do you have any other comments, questions or concerns?
no comment
Jenn K.
February 11, 2026
5.0 / 5
Webinar Rating:
5.0 Stars
Speaker Rating:
5.0 Stars
Do you have any other comments, questions or concerns?
no comment
Stephanie Y.
February 11, 2026
4.2 / 5
Webinar Rating:
4.3 Stars
Speaker Rating:
4.0 Stars
Do you have any other comments, questions or concerns?
no comment

Frequently Asked Questions

The 2026 Form W-4 uses a five-step design that replaced the allowance-based system in 2020. Step 1 captures the employee's personal information including name, address, Social Security Number, and filing status (single, married filing jointly, or head of household). Filing status directly affects the withholding tables used from IRS Publication 15-T. Step 2 is for employees with multiple jobs or spouses who work, and offers three options: using the IRS online withholding estimator, completing the Multiple Jobs Worksheet (Step 2b), or simply checking the box in Step 2c which applies the higher single rate. Step 3 allows employees to reduce withholding by claiming child tax credits and other dependent credits using the amounts specified on the form. Step 4 provides optional adjustments: Step 4(a) lets employees add other taxable income not subject to withholding (such as investment income) to increase withholding; Step 4(b) lets employees enter deductions beyond the standard deduction using the Deductions Worksheet; and Step 4(c) allows employees to specify an additional flat dollar amount to withhold each pay period. Step 5 is the employee signature. Only Steps 1 and 5 are required; all others are optional but improve withholding accuracy. Employees who do not submit a W-4 are withheld at the single rate with no adjustments.
IRS Publication 15-T provides the withholding tables and worksheets that employers use to calculate the correct amount of federal income tax to withhold from employee wages. The publication includes two primary withholding methods: the Wage Bracket Method, which uses tables organized by pay frequency and filing status to look up a flat withholding amount, and the Percentage Method, which applies to wages not falling within the Wage Bracket tables or to payroll systems that need more precise calculations. For employees who submit a 2020 or later Form W-4, employers use the Adjusted Wage Amount worksheets in Publication 15-T to account for the changes made in Step 2, Step 3, and Step 4 of the W-4. For employees with pre-2020 W-4 forms using the old allowance system, a different worksheet converts the old form values into amounts compatible with the current tables. Publication 15-T is updated annually and employers should verify they are using the current year version. Payroll software typically applies Publication 15-T tables automatically, but HR and payroll professionals who need to manually verify withholding calculations or handle edge cases such as supplemental wages, imputed income, or nonresident alien employees must understand how to apply the worksheets directly.
Nonresident alien (NRA) employees are subject to special federal income tax withholding rules that require different Form W-4 handling than U.S. citizens and resident aliens. NRA employees are generally prohibited from claiming exempt status on Form W-4, and there are specific restrictions on the filing status and adjustments they can claim. Under IRS Notice 1392, NRA employees must be informed of special instructions before completing Form W-4. Specifically, NRA employees may not claim exemption from withholding, must generally use single filing status unless they are a resident of Canada, Mexico, or South Korea under a qualifying situation, and must add an additional amount to their wages on the withholding worksheet to account for the fact that NRAs cannot claim the standard deduction. NRA employees who are claiming a tax treaty exemption from federal income tax withholding must complete Form 8233 instead of or in addition to Form W-4, and the employer must review and accept Form 8233 in compliance with IRS requirements. Employees on temporary nonimmigrant visa categories such as F-1 or J-1 are often NRAs for their first few years in the U.S. and need specialized W-4 guidance. Payroll systems should flag NRA employees and apply the correct withholding adjustments to avoid under-withholding.
Many states have their own income tax withholding certificate requirements and do not accept the federal Form W-4 for state withholding purposes. States that require their own withholding form include California (DE 4), New York, New Jersey, Hawaii, Illinois, Mississippi, Virginia, Vermont, North Carolina, and others. Some states accept the federal W-4 but require additional information or allow employees to make state-specific adjustments through a supplemental form. A few states with no state income tax (such as Texas, Florida, and Nevada) do not require any state withholding form. For multi-state employers, maintaining compliance requires tracking each state's withholding form requirements, as using the federal W-4 in a state that mandates its own form may result in incorrect state withholding and compliance violations. State withholding forms are typically available from each state department of revenue or taxation. Record retention requirements also vary by state, with some states requiring longer retention periods than the federal standard of four years. Payroll systems that support multi-state processing should have built-in prompts for state-specific withholding forms when employees designate their work state, and HR onboarding workflows should include state form collection alongside the federal W-4.
The One Big Beautiful Bill Act (OBBBA), signed into law in July 2025, introduced provisions affecting payroll withholding that require employers and payroll professionals to update their Form W-4 and withholding processes. Key provisions include the no-tax-on-tips exclusion for qualifying tipped workers and the no-tax-on-overtime exclusion for qualifying overtime pay, both of which affect how much of an employee's wages are subject to federal income tax withholding. Employees earning qualifying tip or overtime income may need to submit updated Form W-4s to reflect the changed withholding expectations under the new exclusions. The IRS is expected to issue updated Publication 15-T tables and guidance that incorporate these exclusions into the withholding calculation methodology. Employers must implement the IRS-directed withholding adjustments for affected employees, which requires payroll system updates to identify and track qualifying tip and overtime amounts separately. Employees who do not submit updated W-4s may experience withholding that does not reflect the new exclusions, potentially resulting in under- or over-withholding that they would not discover until filing their individual tax returns. Payroll teams should communicate these changes to affected employee populations and encourage W-4 review particularly for workers with significant tip or overtime earnings.