What is the purpose of Form G-4?

What is the purpose of Form G-4?

• A. Federal Withholding Allowance
• B. State Withholding Allowance
• C. Employment Eligibility Verification
• D. Federal Unemployment Tax

Answer: (B)

Form G-4 is used to determine the state withholding allowance for employees in Georgia. It is essential for employees to fill out this form so the employer can calculate the correct amount of state income tax to withhold from their paychecks. This form allows employees to claim allowances based on personal circumstances, such as the number of dependents or additional deductions they may be eligible for, which directly impacts their state income tax withholding. The accurate assessment of state withholding is crucial for both the employee, to avoid over-withholding, and the employer, to ensure compliance with state tax regulations. Understanding the specific purpose of Form G-4 helps employees and employers manage their tax obligations effectively while ensuring employees are not unnecessarily overburdened by state taxes during the year.

Form G-4 is used to determine the state withholding allowance for employees in Georgia. It is essential for employees to fill out this form so the employer can calculate the correct amount of state income tax to withhold from their paychecks. This form allows employees to claim allowances based on personal circumstances, such as the number of dependents or additional deductions they may be eligible for, which directly impacts their state income tax withholding. The accurate assessment of state withholding is crucial for both the employee, to avoid over-withholding, and the employer, to ensure compliance with state tax regulations.

Understanding the specific purpose of Form G-4 helps employees and employers manage their tax obligations effectively while ensuring employees are not unnecessarily overburdened by state taxes during the year.