Question

why is it Important double-check any information that I entered into the payroll system.

why it is important to enter correct information from the W-4 form.

Answer 1

Importance to double-check any information that I entered into the payroll system.

When we set up a payment for an employee in the system we need to ensure that the SSN of the employee, Account details in case of direct deposit and the wages are properly and correctly entered. As once the set up is made the federal , state , and local taxes been withheld on the basis of the information entered in the system . All the information entered must match with the W-4 submitted by the employee to his employer at the time of joining the office. Any wrong info in the Payroll system will lead to wrong withholding of taxes and cause interest and penalties in the tax year.

Bank account details should also be correct so that the payment has been credited in account of the right employee .

Importance of entering a correct information from the W-4 form.

If you don't submit W-4 , the IRS requires to withhold the highest rate . It is important to fill in the information correctly because IRS requires every individual to pay the taxes gradually throughout the year. If the we don't withhold the tax correctly .It will land up paying more taxes with Interest and Penalties for underpaying the taxes at the end of the Calender year.

In case you paid withhold excess taxes your monthly budget will be tighter.