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Payroll Tax Withholding

Note

This page contains information regarding federal, state and local tax withholding as well as a link to fill out the Federal W4 form. 

If an employee moves to a new state or plans to work in another state for more than a month, the employee bears full responsibility to notify Reliant of a move or change in tax withholding location within 2 weeks of the move. If the employee does not report their address change within 2 weeks, causing an incorrect tax location to be used with payroll, the employee will be personally responsible to correct and file their reported wages and taxes to the proper states/local areas on their annual tax filing and pay all associated taxes, penalties, and fees for the corrections. See State Tax Form below for more information.

Federal Taxes

The Federal W4 form determines the amount of federal tax withholding an employee has withheld from their paychecks. In response to tax adjustments made by the 2017 Tax Cuts and Jobs Act, employees will no longer be able to request adjustments to their withholding using withholding allowances. Instead of using allowances, the The W-4 form now takes into account things like:

  1. Filing status (Married, Single, Head of Household, filing single vs. jointly etc.)
  2. Multiple jobs or spouse works
  3. Dependents - the new W4 form deducts a credit from your total tax witholding per child/dependant (if you want more taxes deducted withheld now, you may want to NOT take this credit on your W4 form)
  4. Other adjustments (Additional sources of income, itemized vs. standard deduction, tax credits)

Please remember to open your PAYSTUB emailed to you each month and review the amount being withheld for your taxes so that you can make adjustments to your chosen W4 options as needed. To adjust the monthly withholding amount, employees will submit a new W4 form, linked below. There is also an option to request a one-time tax adjustment in the case where an adjustment is just needed for one month ((see details below), which may be the case when receiving a bonus where the additional income could send you into a higher tax threshold). See more details below. cause the tax withholding percentage on your paycheck to be higher than normal. 

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Commissioned/Ordained Ministers please review Paying SECA Taxes and request adjustments to federal taxes withheld as needed. (See option 4 in the green tip box below.)


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In general, the new government withholdings based on your W4 form are is designed to withhold less taxes than in previous yearsversions of the W4 form. The amount withheld for federal taxes also depends on which option on our paycheck will depend on the options you choose on the W4 this form, which we have outlined below. Reliant is not only allowed to tell employees how to fill out their W4 form, but we can educate them educate employees on what happens with the options that they can choose. If you have questions, please seek the advice of a tax consultant before your first paycheck.

Below is a list of possible options to choose when submitting a W4: REMINDER: Married couples where both spouses are employed are treated as two separate employees. Even though spouses share a fund number, they are paid on separate checks and have taxes withheld on their individual paychecks unrelated to what their spouse chooses for tax settings. (

  • Option 1) - select married filing jointly. IMPORTANT: This option assumes that the other spouse is not working and uses the full amount of the standard deduction for 2 people which typically results in a lower amount of taxes withheld. For example, if both spouses
were to choose
  • work, choosing this option alone option 1
below
  • (married filling jointly)
the system will calculate taxes for each individual spouse using the standard deduction for a married couple (essentially quadrupling the standard deduction amount), which will
  • without checking the box for multiple jobs/spouse works (see Option 2 below) will result in doubling the standard deduction amount used for calculating taxes withheld on each spouse's paycheck. This will typically result in very little taxes (if any) being withheld, potentially leaving a married couple with taxes due at the end of the year.
)
  • Option 1) - select married filing jointly. This option assumes that the other spouse is not working and gives the full amount of the standard deduction for 2 people and typically withholds a lower amount of taxes because there is a higher threshold before taxes will begin to be deducted.

For married couples, these options below will, in most cases, ensure a higher amount is withheld: 

  • Option 2) -select married filing jointly and also check the box “multiple “multiple jobs/spouse works”works”. This option assumes two working people filing taxes with 2 incomes (both spouses working does not mean they both have to be working for Reliant) and this option can also be chosen if you have multiple sources of income.
  • Option 3) -select the first box single/married filing separately. This does not affect how you will file your taxes at the end of the year, it is merely for the software to know how much taxes to withhold, which in this case would be based on the standard deduction for 1 person.
  • Option 4) - select an option above (single/married filing jointly/multiple jobs) and then under section 4C add a specific monthly dollar amount of extra withholding for federal taxes that you want to be deducted would like Reliant to withhold from each paycheck. The amount added here , which will be an additional added to the amount being withheld on top of whatever amount is taken out by the system out of the paycheck each month based on the type of standard deduction you chose, which helps ensure a specific choose in the top section of the form. This helps to ensure that a specific minimum amount is withheld monthly. However, please note that with this option, this tax amount will be deducted from every payment that is sent from Reliant, including separate backpay checks.   Commissioned/Ordained Ministers may choose to utilize this box to indicate an amount they want withheld as extra Federal taxes that they will use to cover their 15.3% SECA (Social Security/Medicare) obligation, since Reliant does not withhold FICA taxes for these employees.  See Paying SECA Taxes. 
Note

If claiming dependents (on STEP 3 of the form), the new W4 deducts a $2000 credit from your total tax withholding per for each child. Therefore, if the desired outcome is to allow for more taxes to be deducted per paycheck you may NOT want to take have your paychecks withhold federal taxes, you may choose not to elect this dependent credit on your W4 form as it could result in little to no federal taxes withheld. Not claiming dependents on your W4 does not affect your ability to claim your dependents and receive those credits on your yearly tax filing. 

REMINDER for dually employed couples:

Married couples where both spouses are employed by Reliant are still treated as two separate employees for taxation purposes. Even though spouses share a fund number, each spouse is paid on a separate check and has taxes withheld on their individual paychecks unrelated to what their spouse chooses for tax settings.

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titleForeign Earned Income

To claim exemption from federal tax withholding due to Foreign Earned Income Exclusion . or other qualified reasons, the W-4 instructions say write “Exempt” in the space below Step 4(c). Then, complete Steps 1a, 1b, 1c, and 5. Do not complete any other steps.

Federal W4 Form

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titleExample of a filled-out form with helpful tips

Step 1: Enter Personal Information

Section (a) - please fill in the appropriate information requested for each box.  Be sure to double check your data entry for accuracy.

  • First name and Middle Initial
  • Last Name
  • Address
  • City
  • State
  • Zip Code

Section (b) 

  • Social Security Number 

Section (c) 

  • Select ONE box that best describes your Federal tax filing status
    • Single or Married filing jointly
    • Married filing jointly (please read green tip info box at the top of this page as additional steps may apply)
    • Head of Household (see instructions before selecting this box)

Steps 2, 3, and 4 below are optional but may be helpful depending on your tax situation. Select only items that apply to you to help our system better estimate your federal tax withholding amount. SEE THE GREEN TIP BOX ABOVE FOR MORE HELPFUL TIPS! If the below additional options do not apply, proceed to Step 5: Signature

Step 2: Multiple Jobs or Spouse Works

  • If you (1) hold more than one job at a time, or (2) are married filing jointly and your spouse also works, you may choose to check box (c) if there are two jobs total for your household and if those jobs are similar in pay.  Otherwise, you may elect to leave this box unchecked.  
  • Note: Reliant cannot advise you on this selection so please make sure you read the instructions carefully and seek outside professional tax assistance if needed. 

Step 3: Claim Dependents:

Note

If claiming dependents, the W4 deducts a $2000 credit from your total tax withholding for each child. Therefore, if the desired outcome is to have your paychecks withhold federal taxes, you may choose not to elect this dependent credit on your W4 form as it could result in little to no federal taxes withheld. Not claiming dependents on your W4 does not affect your ability to claim your dependents and receive those credits on your yearly tax filing. 

  • Multiply the Number of qualifying children under age 17 by $2,000 
    • See example above, 1 child = $2,000
  • Multiply the number of other dependents by $500
    • See example, enter $500 for a spouse that you claim (spouse doesn't work outside of the home) or for an older dependent like a special needs adult living in your household
  • Add the amounts from both boxes above and enter the total on line 3

Step 4: Other Adjustments

  • 4(a) Other Income (not from jobs)

    • This box may be used to indicate additional withholding you want withheld annually to cover other sources of income on which you will pay taxes, such as retirement income or investment income.

    • See example above, if I expect to have $1200 in Capital Gains on which I'll owe taxes for the year, you may want to enter that amount in this 4(a) box.

  • 4(b) Deductions

    •  This box may be used to indicate deductions that you anticipate in excess of the standard deduction amount.

    • See example above, if I expect to have itemized deductions that exceed the standard deduction amount by $5,000, I would enter $5,000 in this 4(b) box.

    • Note: If you anticipate taking the standard deduction when filing your taxes, leave this box blank.

  •  4(c)Extra Withholding  

    • This box may be used to enter additional tax you want withheld each pay period 
    • Note: Reliant pays monthly so these extra withholding taxes would be withheld every month, in addition to your normal taxes for that paycheck.
    • Commissioned/Ordained Ministers may choose to utilize this box to indicate an amount they want withheld as extra Federal taxes that they will use to cover their 15.3% SECA (Social Security/Medicare) obligation, since Reliant does not withhold FICA taxes for these employees.  See Paying SECA Taxes. 

Requesting EXEMPTION from Federal Tax Withholding

  • To claim exemption from federal tax withholding due to Foreign Earned Income Exclusion or other qualified reasons, the W-4 instructions say write “Exempt” in the space below Step 4(c). Then, ensure you have completed Steps 1a, 1b, and 5. There is an "Optional" Box on the form for you to indicate this EXEMPT selection.
  • See example above, please Type in "EXEMPT" to elect this tax setting.
  • Do not complete Steps 2-4 on the form if claiming exemption.

Step 5: Sign Here

  • See example above, by selecting "sign" and entering a digital signature this will complete your acknowledgement/submission of this form.

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If an employee has a change in marital status (don't forget to also complete the the Newly Married Checklist!) or just wants to change the options chosen on the W4 to adjust the amount of monthly Federal Tax withheld, the employee needs to complete a new Form W4. A new W4 can be submitted at any time; however, the W4 needs to be received by the last day of any given month in order to affect the following month's paycheck.

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UI Button
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sizelarge
tooltipFollow the instructions to submit a new W4.
titleFederal W4
urlhttps://signnow.com/s/xaa4ZNzK/qp2S2r4g


State Tax Form

If you live in a state with income taxes to withhold, Reliant will send you a state W4 to complete. Reliant will usually default to using the home address of the employee as the working address for state and local income tax withholding. However, in the case of those in a fixed term residency/internship, it is assumed that the employee will spend most of their time working at the church/ministry partner location (rather than working from home), so the city and state of that church/ministry partner will be used for tax withholding purposes. 

If an employee moves to a new state or plans to work in another state for more than a month, the employee bears full responsibility to notify Reliant of a move or change in tax withholding location within 2 weeks of the move. If the employee does not report their address change within 2 weeks, causing an incorrect tax location to be used with payroll, the employee will be personally responsible to correct and file their reported wages and taxes to the proper states/local areas on their annual tax filing and pay all associated taxes, penalties, and fees for the corrections. 

The employee must complete a new State Withholding Allowance Certificate if the new state requires such a certificate. To notify Reliant of a move or change in tax working location, please complete the Contact Info Change Form - US. or Contact Info Change Form - International and the payroll team will reach out with any required state or local forms based on your new address.

If you are not moving but need to update your state tax form to adjust marital status, etc. please email payroll@reliant.org with your request and payroll will email you a link to a new state tax form.

Some states also have local taxes for municipalities and school districts as well as other types of state taxes such as transit taxes, paid leave, or unemployment taxes. Reliant only withholds local taxes when the local jurisdiction or state requires employers to withhold. Local taxes that are optional for the employer to withhold will not be withheld by Reliant and are the responsibility of the employee to report and file on their own behalf. 

One-Time Tax Adjustments

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In the case that an employee wants to make a one-time Federal tax change to a certain paycheck (without making a permanent change to their federal withholdings), the employee may send an email to to payroll@reliant.org by the last day of any given month in order to affect the following month's paycheck. The email should be from the employee's @reliant.org email account and must clearly state how much money the employee would like withheld for the specific pay date. This one-time time adjustment option can be helpful to use when an employee is receiving a bonus that will increase their tax threshold for the month. 

For example, an employee could send an email stating "From my XX/XX/XXXX (Month/Day/Year) paycheck, please withhold $X (specify the dollar amount) in Federal taxes". 

State Taxes One Time Change

If an employee moves to a new state or plans to work in another state for more than three consecutive months, the employee must complete a State Withholding Allowance Certificate if the new state requires such a certificate. To notify Reliant of a move, please complete the Contact Info Change Form - US. or Contact Info Change Form - International and the payroll team will reach out with any required forms based on your new address. Employees bear full responsibility to submit the certificate by the 16th day of the first month in which the employee is working in the new state.

To submit an updated state tax form if you have not moved, please email payroll@reliant.org with your request. 

Local Taxes One Time Change

Reliant only withholds local taxes when the Local Jurisdiction or State requires employers to withhold. Local taxes that are optional for the employer to withhold will not be withheld by Reliant and are the responsibility of the employee to report and file on their own behalf.  If an employee lives in a locality with a required tax, the employee must notify Reliant of the local tax and submit the appropriate withholding form (if applicable) for Reliant to withhold taxes.  Please do so by submitting the Contact Info Change Form - US. or Contact Info Change Form - International and the payroll team will reach out with any required forms based on your new address. Employees bear full responsibility to submit the certificate by the 16th day of the first month in which the employee is working in the new locality.*State and local taxes are based on a percentage of the employee wages, so the amounts are typically not adjusted. 


End of Year W-2s and Tax Documents

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