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Denver Accounting Firm Allowances on W-4 Employment Form

December 19, 2018

Before beginning a new job employees must fill out a handful of paperwork from the human resources department. In addition to basic demographic information and employment verification paperwork there is also a W-4 employment form administered by employers. This form allows businesses to know how much should be withheld from an individual’s paycheck and the amounts vary based on a few different factors.

An employee's marital or filing status, if married and filing separately has an effect plus the number of allowances dictated by the individual. Both impact the taxes applied and following is how each can change the amount of money you receive during any given pay period or when filing yearly taxes.

Marital Status

There are three available options to choose from when filling out a W-4 form for your employer. Married or single tax rates are each self-explanatory and both depend on an individual’s income but typically those who withhold at the single rate receive less of their money initially.

The third option is for those who are married but elect to bring home less up front and have extra money withheld at the higher, single rate. This can be beneficial if you feel that you may owe at the end of the year and need to put away as much money as possible during the year. Another option is to have additional money withheld from your check, which is always an option, if needed.


The other major factor determining a paycheck deduction is allowances which are claimed. Withholding allowances are traditionally determined by the number of dependents an employee has but can vary based on individual tax situations.

The lower number of allowances taken, the more money that will be withheld from your paycheck and sent to the government for use. Electing to take more allowances will result in more money in your pocket during the course of the year.

Depending on how the overall tax implications are applied at the end of the year, either a refund or payment must be made to the Internal Revenue Service (IRS). Choosing zero can be a start to a refund but a careful review of your individual or married tax situation may be needed to accurately determine the best possible number of allowances for an individual to claim.

The experts at Bloch, Rothman, and Associates would be happy to help analyze your income status and provide any assistance in determining how best to utilize your allowances and withholdings. Our associates can also help in defining tax implications or assist you in deciding which deductions need to be correctly applied in your specific situation. All services provided can and will be completed in a timely manner, accounting for any restrictions or imposed tax deadlines. Whether you need W-4 help, a simple explanation on another random tax form, are in need of representation, or would like help in a variety of other services our tax experts are ready and willing to assist. Call 303-321-7160 or contact us for your initial free no obligation consultation.