Which option in Step 2 of Form W-4 should the employee use to account for multiple jobs?
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Last modified 5/25/2020 1:33:51 PM EST |
Added by TaxBandits Team
Step 2 of Form W-4 is applicable if the employee has multiple jobs or if their spouse works. It allows the employees to choose one of the three options, which involves tradeoffs between accuracy, privacy, and ease of use.
Option 1: Use the estimator at www.irs.gov/W4App for most accurate withholding.
Option 2: Use the Multiple Jobs Worksheet on page 3 and enter the result in Step 4(c) below for roughly accurate withholding.
Option 3: Applicable If there are only 2 jobs in total. Accurate for jobs with similar pay.