A W4 form might seem like just another piece of human resources (HR) paperwork, but it actually plays a significant role in your financial life. This form determines how much federal income tax is withheld from your paycheck, directly affecting your take-home pay as well as your potential refund or tax bill at the end of the year.

This is why it’s important to keep your W4 up to date. Thankfully, if your company uses Paylocity HR & Payroll, making changes to your W4 is a quick and straightforward process.

Here are step-by-step instructions on how to change W4 on Paylocity.

  • Step 1: Log in to your Paylocity account
  • Step 2: Navigate to ‘Employee Status’
  • Step 3: Go to ‘Payroll Setup’
  • Step 4: Select ‘Taxes’
  • Step 5: Click on ‘FITW - Federal Income Tax.’ From here, you will land in the ‘Federal Tax Details’ section, where you can:
  • Step 6: Update your filing status (e.g., Single, Married, Head of Household)
  • Step 7: Adjust your allowances
  • Step 8: Specify any additional withholding amounts you’d like to add

Note: Be sure to review your changes carefully and save them before exiting. 

Alternatively, you can also update your W4 by filling out a new form and sending it directly to your HR department. 

When Should You Update Your W4?

It’s a good idea to review and possibly update your W-4 if: 

  • You have gotten married or divorced
  • You have had or adopted a child
  • You have started a second job, or your spouse has started working
  • Your income or deductions have significantly changed
  • You received a large tax bill or refund last year

Making sure your W4 reflects your current situation can help avoid surprises at tax time and ensure you’re not over- or under-withholding.