W-4: Are employers required to have employees complete a new W-4 each year?

As an employer your responsibility regarding Form W-4 is to remind employees to fill out a new W-4 at the end of each year or before your first payroll of the year.  It isn’t necessary that an employee fill out a new W-4 each year. The most recent form you have on file will remain in effect until the employee submits a new one. 

You should make sure that you have a Form W-4 on file for all employees. For employees claiming to be exempt from withholding you need to have a new Form W-4 completed each year.

For employers in Oregon there is a new Form OR-W-4 that will allow employees to determine their correct Oregon withholding. Due to Federal tax law changes, including how withholding allowances are calculated, the state believes that Oregon employees may not be withholding enough to cover their personal income tax liabilities.  Oregon is asking the employers provide Form-OR-W-4 to their employees anytime federal Form W-4 is provided.

The Oregon Department of Revenue has created an online withholding calculator to help employees determine the number of allowances they should claim.  Employees are not required to fill out Form OR-W-4 but the state does recommend that they check the tax calculator to make sure they are withholding enough.

Please contact our office with any questions.

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