I-9 Center: W-4 Tax Reciprocity

Note: This feature is currently behind a feature flag. To request access, please reach out to your Customer Success Manager.

Overview

We are pleased to introduce the W-4 Tax Reciprocity feature! This new functionality simplifies tax compliance for workers who live in one state and work in another by automatically determining and applying the correct tax forms based on state reciprocity agreements. The feature streamlines the tax filing process, ensuring accurate withholding and reducing administrative burden for both workers and employers.

Key Benefits

• Automated Tax Form Selection: The system automatically detects state-to-state reciprocity agreements and applies the correct tax forms, eliminating the need for workers to complete forms for both their resident and working states.

• Streamlined Worker Experience: During the W-4 completion process, workers are prompted to opt into the tax reciprocity agreement and are guided seamlessly to the appropriate forms based on their specific work and residence situation, reducing confusion.

• Improved Compliance: This feature ensures workers fill out the correct forms, helping them stay compliant with state tax laws and reducing the risk of errors in the filing process.

How It Works

1. Navigate to I-9 Settings > W-4 State Tax Reciprocity.

2. Toggle the feature on to activate.

3. Once enabled, workers will be prompted to opt into state tax reciprocity agreements during the W-4 form completion process.

4. The system will automatically apply the correct tax form based on the worker's state of residence and state where they work, ensuring the correct withholding.

For questions or more information, please reach out to our support team or your Customer Success Manager.