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Entering an Employee's Tax Form W-4 Withholding Allowance Certificate in HRS

Overview

This document explains how to add Tax Form W-4 Employee's Withholding Certificate in PeopleSoft HRS for a new employee and update W-4 tax status for existing employees. Form W-4 is used to withhold the correct federal and state income tax from the employee's pay.

Process Considerations:

  • Non-Wisconsin Residents may be responsible for filing non-resident taxes for Wisconsin and resident taxes in the state in which they legally reside. If the employee works in AZ, CA, CT, GA, IA, ID, IL, LA, MA, ME, MI, MN, MT, NC, NE, SC, UT or VA, the employee can have wages reported to that state.
  • Wisconsin currently has reciprocity agreements with four states: Illinois, Indiana, Kentucky, and Michigan. These agreements state, in general, that residents of these states will be taxed on personal service income by their home state, rather than by Wisconsin.
  • The Local Tax Data Page is not used.
  • Information entered on the Federal and State Tax Data tabs should match the information the employee entered on their Form W-4s.
  • Foreign National Employees should use the Glacier Nonresident Alien Tax Compliance System to determine if they are a resident or nonresident alien for tax purposes. If you are updating their federal employee tax data page, but do not have a copy of their Glacier Tax Summary Report, you may update their number of withholding allowances, but should not change the Federal Special Withholding Tax Status listed.  Validate that they have a visa type listed in HRS: Workforce Administration > Personal Information > Citizenship > Identification Data > Visa/Permit Data.  If row 1 does not list a visa type, enter FNL.  Refer to KB Adding Visa Data (Cross reference to International Tax) in HRS
Click on the links below to skip directly to a section:

Instructions for Entering an Employee's Tax Form W-4 (Employee Withholding Certificate) in HRS (New Hire)

1. Navigate to: Payroll for North America > Employee Pay Data USA > Tax Information > Update Employee Tax Data.

2. In the Update Employee Tax Data screen, enter the 8-digit employee ID in the Empl ID field, and click the Search button.
3. The Federal Tax Data tab displays for the employee. Verify the employee name and Person ID (also known as Empl ID).
4. For new hires, the Effective Date field automatically displays the hire date of the employee. The text, "This data was last updated by Hire Procss" (e.g. Hire Process) indicates the employee is a new hire.

5. To add a new effective date row, click the plus icon, located in the Effective Date section.
warning sign A new row must be added to document a Form W-4 was received, even if the new Form W-4 matches existing data in HRS. 

6. In the new Effective Date field, leave current date, unless you are entering a W4 on the same date as the hire date, then you will need to change the date to the day after the hire date.        **There cannot be more than one row per date.
7. In the Federal Form W-4 Version section, select the 2020 or Later radio button to enter a new Federal Form W-4. If updating ONLY state tax data for 2020 or later, keep the federal tax        page with the current form and skip to the state section below.
fed 2020
8. In the Federal Withholding Elements section:

Select the correct *Special Withholding Tax Status
a)  Default value is None. This means no special status exists and that federal withholding tax should be calculated based on the employee's gross income, marital status, and withholding allowance. (This option applies for most employees).
b) No Taxable Gross, No Tax Taken option - Employee does not have reporting and withholding obligations with the U.S. Federal government.  (This is not a common option). One example would be for non U.S. Citizens or foreign nationals who are working for the University in a foreign country and are not required to file federal tax in the United States.
c) Maintain Taxable Gross - Employee has to report taxable wages to the U.S. Federal government, but tax does not have to be withheld from the employee's wages. Two examples are:
i) Employee claims EXEMPT for Federal Tax by completing "Exempt" under line 4(c) on their Form W-4.
ii)Employee has an applicable IRS Form 673 | Statement for Claiming Exemption From Withholding on Foreign Earned Income Eligible for the Exclusion(s) Provided by Section 911 on file.

d) Nonresident  Alien option - Employee is a nonresident alien or claiming tax treaty.

9. Select the correct Tax Status, default value is Single. Select an option to indicate the employee's marital status for federal withholding. This should match what is on the employee's W-4 form: Single, Married, or Head of Household.

10. In the Dependent Amount field, enter the flat dollar amount of dependents from the employee's Form W-4 on line 3.
11. In the Other Income field, enter the flat dollar amount of other income from the employee's Form W-4 line 4(a).
12. In the Deductions field, enter the flat dollar amount of deductions from the employee's form W-4 line 4(b).

13. In the Additional Amount field, enter the flat dollar amount of Extra withholding to be withheld per paycheck. This amount should match what is on the employee's Form W-4 line 4(c).
**Steps 14 - 21 are for PY Core use only**
14. In the W-4 Processing Status section select: 
 
        None - Select this option to indicate no change.
15. Notification Sent - Select to indicate that the employee has been notified to submit a new Form W-4.
16. New W-4 Received - Select to indicate that a new Form W-4 has been received.(Not applicable for first time entry)
update tax fed w4 processing
17. In the Lock-In Details section verify if a lock-in letter has been received and entered by UW-Shared Services.
Letter Received checkbox - This is selected to indicate that the employee has received a lock-in letter from the U.S. Internal Revenue Service (IRS).
 All lock-in letters are processed at Shared Services. A new W-4 can only be entered if it falls within this limitation. (ie. The employee defined a lower withholding allowance than the limitation, which will allow more tax withheld).
 Limit On Allowances: (Default value is 0). The number that is entered is the amount defined in the lock-in letter as the employee's federal withholding allowance limitation.
update tax fed lock in letter 18. The State Tax Options section is not used at the University of Wisconsin.
19. The Special Tax Form Renewal section is customized for the University of Wisconsin to record special tax forms for which an employee might file. It can be used in queries and in reporting to provide information for renewal purposes.

20. In the Tax Form Renewal field, click on the data lookup icon to display a list of special tax forms. 

21. In the Look Up Tax Form Renewal, Search Results screen, select the desired IRS special tax form (IRS Form 673 is the only form that applies on the Federal Page).
20. The selected form is displayed in the Tax Form Renewal field.
21. In the Tax Treaty/NR Data (NR represents Nonresident Alien) section, complete the fields below, as indicated on the employee's W-4 form, section titled, All International Visitors Complete the Following.

22. When finished entering information on the Federal Tax Data tab, DO NOT SAVE YET.  You will need to enter and/or verify information on the State Tax Data tab.

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Entering an Employee's State Tax Data from Form W-4 (New Hire)

To access the State Tax Data tab:
  If your cursor is at the top of the page, click the State Tax Data
  If your cursor is at the bottom of the page, you can click the State Tax Data hyperlink.
The Effective Date on the State Tax Data page is copied over from the Federal Tax Data page. This is because the Federal Tax Data page and the State Tax Data pages are linked.
1. In the State Information section, the WI default values of Single, Zero are displayed. For employees that work outside the state of Wisconsin, the default values will need to be updated.        See below for specific values depending upon state of work location.
Note: In PeopleSoft, an employee is required to have both a Resident State and a UI Jurisdiction State.

 

state

2. In the Special Withholding Tax Status, there are several options available:
  • None (default value) - This means no special tax status exists, and that State withholding tax should be calculated based on the employee's gross income, marital status, and withholding allowance. (This option applies for most employees).
  • No Taxable Gross, No Tax Taken - Select this option if the employee has indicated they are a resident of Indiana, Illinois, Michigan or Kentucky from Form W-4.
    • Also select this option if the employee is living and working in a state other than Wisconsin.
    • If entering this tax status, the UW Special Tax Form field must be completed, detail below.
  • Maintain Taxable Gross option - Select this option if the employee is exempt from State of Wisconsin withholding tax (On the employee's WT-4 form, this would be indicated on line 3). 
    • This option would also be used when entering a Wisconsin WT-4A (On the employee's WT-4A form, you will enter the Additional Amount field of withholding indicated in Box 3).
  • Nonresident Alien option - Employee is a nonresident alien or claiming tax treaty.
4. In the Tax Marital Status, the default value is Single, enter the value that appears on the employee's WT-4.
  If the withholding status is "Married but withhold at higher single rate", select S for Single.

  If the employee is claiming exempt from withholding, their selection should be "X".
5. Enter the Withholding Allowances, the default value is 0, an employee claims for state withholding tax purposes, defined on WT-4 form line 1(d).
    ***If there are any fields missing, the W-4 form is considered INVALID and should be ignored.  Leave the default settings for withholding (Single, no adjustments) and reach out to the                  campus to obtain a valid form for entry***

6. In the Additional Amount field - Enter the flat dollar amount of additional State Tax to be withheld per paycheck, defined on WT-4 form line 2.
  Additional Allowances, only used with California residents.

state witholding new

**Steps 7 and 8 are for PY Core use only**
7. In the Lock-In Details section:
 Letter Received checkbox - This is selected to indicate that the employee has received a lock-in letter from a state's Department of Revenue (All lock-in letters are processed at Shared Services)

 Limit On Allowances: (Default value is 0). The number that is entered is the amount defined on the lock-in letter as the employee's State withholding allowance limitation.
8. The Tax Form Renewal Processing Status section lists options to indicate the workflow status of the State Exempt form renewal status.

9. The UW Special Tax Form Code section is customized for the University of Wisconsin to record special State tax forms for which an employee might file. This field must be completed if an individual claims NTT/NTG on the Wisconsin State Tax page.  If this section is completed you MUST check the Non-Residency Statement Filed checkbox.
  In the Look Up Tax Form Renewal, Search Results screen, select the desired special State tax form. 
"02" = WI W-200: Form W-200, Certificate of Exemption from Withholding for Prepayment of Estimated Tax (if the employee is claiming exempt status for •  WI tax). 
"03" = WI WT-4A: Wisconsin Employee Withholding Agreement (if the employee submits this form with their W-4) 
"04" = WI W-220: Non-Resident Employee's Withholding Reciprocity Declaration (if the employee claims a State Reciprocity on the University's W-4 form). 
"05" = IL-W-5-NR: Statement of Nonresidence in Illinois.
"06" = CA DE-4: Employee files a CA DE-4, see California tax section below for more instructions.
"07" = Wisconsin Non-Resident working outside of WI. If the employee identifies on the Supplemental Form W-4 that they are working out of state or submits another state's W4 form
10. To save the W-4 record for the new employee, click Save, located at the bottom of the screen.
tax state lower section

Note: The Local Tax Data tab is not used.

Entering State Tax Data for States other than Wisconsin

If Employee is a Legal Resident of Indiana, Illinois, Michigan or Kentucky (the employee would have checked one of the reciprocity declaration boxes on their W4) make the following changes:
If an employee completes a Form Supplemental for Indiana, Illinois, Kentucky, or Michigan, and also completes a Wisconsin W4 form, PYSD should contact the                            employee with instructions to use Employee Self-Service to update their W4 elections.  Submitting a Form Supplemental and Wisconsin W4 form is conflicting                              data and PYSD should reject the request.

1. In the State Information Section:
  Uncheck the Resident box so that it is blank.
  Check the box labeled, "Non-Residency Statement Filed"
Note: This option indicates the employee has filled out the proper paperwork for reciprocity, which can be found on the W-4 form or the separate Wisconsin Tax Form W-220 Nonresident Employee's Withholding Reciprocity Declaration).
2. In the Special Withholding Tax Status field select No Taxable Gross, No Tax Taken.
3. In the UW Special Tax Form Code section, select "04" for reciprocity form WI W-220.

state reciprocity

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If Employee is a Legal Resident of Another State (Not IN, IL, MI, or KY) and works IN WI (employee would have defined tax residence location on W4 outside of WI, but work location as WI):

1. In the State Information Section:
  Leave the default values "as is" (Resident and UI Jurisdiction checked)
2. In the Special Withholding Tax Status leave the default value of "None".

Note: Employees are liable for taxes in Wisconsin so the withholding is the same as if they were a Wisconsin resident.

state non reciprocity
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If Employee is a Legal Resident of Another State (Not WI, AZ, CA, CT, GA, IA, ID, IL, IN, KY, LA, MA, ME, MI, MN, MT, NC, NE, SC, UT or VA) and Works OUTSIDE of WI (Defined tax residence AND work location outside of WI on W4, or W4 for any state not defined above:
state w4
1. In the State Information Section:
  Leave the UI Jurisdiction checked and uncheck Resident
2. In the Special Withholding Tax Status select No Taxable Gross, No Tax Taken.

nttntg

3. In the UW Special Tax Form Code Section:
  Select 07 for Non-Wisconsin Resident and Work Outside of Wisconsin.
state nttntg
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If Employee is a Legal Resident and WORKS in Arizona:

1. Add a new State Page in Update Employee Tax Data.  It will default to WI, make the following changes on the WI row: 

  • Uncheck the 'Resident' checkbox
  • Validate that 'UI Jurisdiction' checkbox is checked
  • Check 'Non-Residency Statement Filed' check box
  • Special Withholding Tax Status should be set to No Taxable Gross; No Tax Taken
  • In the 'UW Special Tax Form Code' section add the Tax Form Renewal code '07'

2. Add a new row under 'State Information' section by clicking the 'plus sign' icon to enter AZ withholding detail.

  • Update the 'State' field to reflect AZ as the state to withhold for
  • Check 'Resident' box
  • Validate that 'UI Jurisdiction' checkbox is NOT checked
  • In the State Withholding Elements section, select Special Withholding Tax Status of None
  • Enter Tax Status of N (Not Applicable), unless claiming Exempt (X). 
    • NOTE: if Exempt is selected, update Special Withholding Tax Status to Maintain Taxable Gross
  • Enter Additional Amount (A-4, Line 1, question number 2)
  • Enter AZ Withholding Percent (A-4, Line 1)  *If percentage is not checked on AZ-4, default to 2%*
  • Click SAVE

          Tax Data

3. Enter Tax Distribution to AZ 100% (employees are defaulted to WI).   Path: Payroll for North America/Employee Pay Data USA/Tax Information/Update Employee Tax Distribution
  • Add a new row for AZ 100% tax distribution for each employee record. Use the same effective date as the W4 page.
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If Employee is a Legal Resident and WORKS in California:

NOTE: ALL CA W4s (DE - 4) should be sent to UWSA Shared Services for reporting requirements (fax 608-890-2327).

1. Add a new State Page in Update Employee Tax Data.  It will default to WI, make the following changes on the WI row:
  • Uncheck the 'Resident' checkbox
  • Validate that 'UI Jurisdiction' checkbox is checked
  • Check 'Non-Residency Statement Filed' check box
  • Special Withholding Tax Status should be set to No Taxable Gross; No Tax Taken
  • In the 'UW Special Tax Form Code' section add the Tax Form Renewal code '06'

    CA Tax Form Code
2. Add a new row under 'State Information' section by clicking the 'plus sign' icon to enter CA withholding detail.
  • Update the 'State' field to reflect CA as the state to withhold for
  • Check 'Resident' box
  • Validate that 'UI Jurisdiction' checkbox is NOT checked
  • SDI Status should be 'Not Applicable'
  • In the State Withholding Elements section, select Special Withholding Tax Status of None
  • Enter Marital Status, Withholding Allowances and any Additional Allowances - if applicable. 
  • In the California Wage Plan Code section, select Disability/Unemployment Plan&bsp; = None/None.
  • Click SAVE
california new
3. Enter Tax Distribution to CA 100% (employees are defaulted to WI).   Path: Payroll for North America/Employee Pay Data USA/Tax Information/Update Employee Tax Distribution
  • Add a new row for CA 100% tax distribution for each employee record. Use the same effective date as the W4 page.
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If Employee is a Legal Resident of Connecticut:
1. Add a new State Page in Update Employee Tax Data.  It will default to WI, make the following changes on the WI row:
  • Uncheck the 'Resident' checkbox
  • Validate that 'UI Jurisdiction' checkbox is checked
  • Check 'Non-Residency Statement Filed' check box
  • Special Withholding Tax Status should be set to No Taxable Gross; No Tax Taken
  • In the 'UW Special Tax Form Code' section add the Tax Form Renewal code '07' 
2. Add a new row under 'State Information' section by clicking the 'plus sign' icon to enter CT withholding detail.
  • Update the 'State' field to reflect CT as the state to withhold for
  • Check 'Resident' box
  • Validate that 'UI Jurisdiction' checkbox is NOT checked
  • FMLI Status should be 'Not Applicable'
  • In the State Withholding Elements section, select Special Withholding Tax Status of None
  • Enter Tax Status (CT-W4, line 1).  NOTE: Tax Status 'N' is not being used.  
    • Select 0, if CT-W4 lists letter D
    • Select B, if CT-W4 lists letter A
    • Select H, if CT-W4 lists letter B
    • Select M, if CT-W4 lists letter C
    • Select S, if CT-W4 lists letter F
    • Select X, if CT-W4 lists letter E
      • NOTE: if E is entered on line 1, update Special Withholding Tax Status to Maintain Taxable Gross
  • Enter Additional Amount (CT-W4, Line 2 or Line 3) - Cannot enter a negative value
  • Change CT ONLY drop down to Decrease Additional Amount if Line 3 has a value
  • Click SAVE

          Tax Data Resident

3. Enter Tax Distribution to CT 100% (employees are defaulted to WI).   Path: Payroll for North America/Employee Pay Data USA/Tax Information/Update Employee Tax Distribution

  • Add a new row for CT 100% tax distribution for each employee record. Use the same effective date as W4 page.

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If Employee is a Legal Resident and WORKS in Georgia:
1. Add a new State Page in Update Employee Tax Data.  It will default to WI, make the following changes on the WI row:
  • Uncheck the 'Resident' checkbox
  • Validate that 'UI Jurisdiction' checkbox is checked
  • Check 'Non-Residency Statement Filed' check box
  • Special Withholding Tax Status should be set to No Taxable Gross; No Tax Taken
  • In the 'UW Special Tax Form Code' section add the Tax Form Renewal code '07' 
2. Add a new row under 'State Information' section by clicking the 'plus sign' icon to enter GA withholding detail.
  • Update the 'State' field to reflect GA as the state to withhold for
  • Check 'Resident' box
  • Validate that 'UI Jurisdiction' checkbox is NOT checked
  • In the State Withholding Elements section, select Special Withholding Tax Status of None
  • Enter Tax Status (G-4, line 3).  
    • Select B, if Married Filing Jointly, Both Spouses Working (B), or Married Filing Separate (D) is checked
    • Select H, if Head of Household (E) is checked
    • Select M, if Married Filing Jointly, One Spouse Working (C) is checked
    • Select S, if Single (A) is checked
    • Select X, if  Exempt is checked on GA Form G-4, number 8 EXEMPT section
      • NOTE: if X is entered, update Special Withholding Tax Status to Maintain Taxable Gross
  • Enter Additional Amount - if applicable, from GA Form G-4, line 6
  • Enter Additional Allowances - if applicable, from GA Form G-4, total from line 4 and line 5
  • Click SAVE

         

3. Enter Tax Distribution to GA 100% (employees are defaulted to WI).   Path: Payroll for North America/Employee Pay Data USA/Tax Information/Update Employee Tax Distribution

  • Add a new row for GA 100% tax distribution for each employee record. Use the same effective date as W4 page.

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If Employee is a Legal Resident of Illinois:

NOTE: ALL IL W4s should be sent to UWSA Shared Services for reporting requirements (fax 608-890-2327).

  Illinois regulations require any employee claiming total exemption from Illinois Income Tax Withholding, to also claim total exemption from Federal Income Tax                              Withholding.  We are required to disregard any W4 claiming exempt for state withholding only.

1. Add a new State Page in Update Employee Tax Data.  It will default to WI, make the following changes on the WI row:

  • Uncheck the 'Resident' checkbox
  • Validate that 'UI Jurisdiction' checkbox is checked
  • Check 'Non-Residency Statement Filed' check box
  • Special Withholding Tax Status should be set to No Taxable Gross; No Tax Taken
  • In the 'UW Special Tax Form Code' section add the Tax Form Renewal code '04' or '07' depending on what form has been submitted
2. Add a new row under 'State Information' section by clicking the 'plus sign' icon to enter IL withholding detail.
  • Update the 'State' field to reflect IL as the state to withhold for
  • Check 'Resident' box
  • Validate that 'UI Jurisdiction' checkbox is NOT checked
  • In the State Withholding Elements section, select Special Withholding Tax Status of None
  • Enter Tax Marital Status of Not Applicable or Exempt if claiming exempt.
    • If you have received an exempt W4 without federal exemption, default to Not Applicable
  • Withholding Allowances from IL Form IL-W-4 line 1
  • Additional Amount - if applicable, from IL Form IL-W-4 line 3
  • Additional Allowances - if applicable, from IL Form IL-W-4 line 2
  • Click SAVE
w4 il
3. Enter Tax Distribution to IL 100% (employees are defaulted to WI).   Path: Payroll for North America/Employee Pay Data USA/Tax Information/Update Employee Tax Distribution
  • Add a new row for IL 100% tax distribution for each employee record. Use the same effective date as W4 page.
dist il
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If Employee is a Legal Resident and WORKS in Idaho:
1. Add a new State Page in Update Employee Tax Data.  It will default to WI, make the following changes on the WI row:
  • Uncheck the 'Resident' checkbox
  • Validate that 'UI Jurisdiction' checkbox is checked
  • Check 'Non-Residency Statement Filed' check box
  • Special Withholding Tax Status should be set to No Taxable Gross; No Tax Taken
  • In the 'UW Special Tax Form Code' section add the Tax Form Renewal code '07' 
2. Add a new row under 'State Information' section by clicking the 'plus sign' icon to enter ID withholding detail.
  • Update the 'State' field to reflect ID as the state to withhold for
  • Check 'Resident' box
  • Validate that 'UI Jurisdiction' checkbox is NOT checked
  • In the State Withholding Elements section, select Special Withholding Tax Status of None
  • Update Tax Marital Status (based on ID W-4)
  • Withholding Allowances from ID W-4 form, line 1
  • Additional Amount - if applicable, from ID W-4 form line 2
  • Click SAVE
UWS TAX STATUS HRS screenshot
3. Enter Tax Distribution to ID 100% (employees are defaulted to WI).   Path: Payroll for North America/Employee Pay Data USA/Tax Information/Update Employee Tax Distribution
  • Add a new row for ID 100% tax distribution for each employee record. Use the same effective date as W4 page.
If Employee is a Legal Resident and WORKS in Iowa:
NOTE: we need to also collect IA W-4 for all IA reporting and withholding.
1. Add a new State Page in Update Employee Tax Data.  It will default to WI, make the following changes on the WI row:
  • Uncheck the 'Resident' checkbox
  • Validate that 'UI Jurisdiction' checkbox is checked
  • Check 'Non-Residency Statement Filed' check box
  • Special Withholding Tax Status should be set to No Taxable Gross; No Tax Taken
  • In the 'UW Special Tax Form Code' section add the Tax Form Renewal code '07' 
2. Add a new row under 'State Information' section by clicking the 'plus sign' icon to enter IA withholding detail.
  • Update the 'State' field to reflect IA as the state to withhold for
  • Check 'Resident' box
  • Validate that 'UI Jurisdiction' checkbox is NOT checked
  • In the State Withholding Elements section, select Special Withholding Tax Status of None
  • Update Tax Marital Status (based on IA W-4)
  • Withholding Allowances from IA W-4 form, line 6
  • Additional Amount - if applicable, from IA W-4 form line 7
  • Click SAVE

         

3. Enter Tax Distribution to IA 100% (employees are defaulted to WI).   Path: Payroll for North America/Employee Pay Data USA/Tax Information/Update Employee Tax Distribution
  • Add a new row for IA 100% tax distribution for each employee record. Use the same effective date as W4 page.
If Employee is a Legal Resident and WORKS in Louisiana
1. Add a new State Page in Update Employee Tax Data.  It will default to WI, make the following changes on the WI row:
  • Uncheck the 'Resident' checkbox
  • Validate that 'UI Jurisdiction' checkbox is checked
  • Check 'Non-Residency Statement Filed' check box
  • Special Withholding Tax Status should be set to No Taxable Gross; No Tax Taken
  • In the 'UW Special Tax Form Code' section add the Tax Form Renewal code '07' 
2. Add a new row under 'State Information' section by clicking the 'plus sign' icon to enter LA withholding detail.
  • Update the 'State' field to reflect LA as the state to withhold for
  • Check 'Resident' box
  • Validate that 'UI Jurisdiction' checkbox is NOT checked
  • In the State Withholding Elements section, select Special Withholding Tax Status of None
  • Update Tax Marital Status (based on LA W-4 line 6)
  • Withholding Allowances from LA W-4 form, line 7
  • Additional Amount - if applicable, from LA W-4 form line 8
    • Select in LA Only field 'Increase amount' or 'Decrease amount'.  Line 8 on LA W-4 will have a negative value if the employee wants to decrease amount.
  • Click SAVE
Louisiana HRS screenshot
3. Enter Tax Distribution to LA 100% (employees are defaulted to WI).   Path: Payroll for North America/Employee Pay Data USA/Tax Information/Update Employee Tax Distribution
  • Add a new row for LA 100% tax distribution for each employee record. Use the same effective date as W4 page.

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If Employee is a Legal Resident and WORKS in Maine
1. Add a new State Page in Update Employee Tax Data.  It will default to WI, make the following changes on the WI row:
  • Uncheck the 'Resident' checkbox
  • Validate that 'UI Jurisdiction' checkbox is checked
  • Check 'Non-Residency Statement Filed' check box
  • Special Withholding Tax Status should be set to No Taxable Gross; No Tax Taken
  • In the 'UW Special Tax Form Code' section add the Tax Form Renewal code '07' 
2. Add a new row under 'State Information' section by clicking the 'plus sign' icon to enter ME withholding detail.
  • Update the 'State' field to reflect ME as the state to withhold for
  • Check 'Resident' box
  • Validate that 'UI Jurisdiction' checkbox is NOT checked
  • In the State Withholding Elements section, select Special Withholding Tax Status of None
  • Update Tax Marital Status (based on ME W-4 section #3)
  • Withholding Allowances from ME W-4 form, line 4
  • Additional Amount - if applicable, from ME W-4 form line 5
  • Click SAVE
Maine HRS Screenshot

3. Enter Tax Distribution to ME 100% (employees are defaulted to WI).   Path: Payroll for North America/Employee Pay Data USA/Tax Information/Update Employee Tax Distribution

  • Add a new row for ME 100% tax distribution for each employee record. Use the same effective date as W4 page.

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If Employee is a Legal Resident of Massachusetts

 1. Add a new State Page in Update Employee Tax Data.  It will default to WI, make the following changes on the WI row:

  • Uncheck the 'Resident' checkbox
  • Validate that 'UI Jurisdiction' checkbox is checked
  • Check 'Non-Residency Statement Filed' check box
  • Special Withholding Tax Status should be set to No Taxable Gross; No Tax Taken
  • In the 'UW Special Tax Form Code' section add the Tax Form Renewal code '07'

2. Add a new row under 'State Information' section by clicking the 'plus sign' icon to enter MA withholding detail.

  • Update the 'State' field to reflect MA as the state to withhold for
  • Check 'Resident' box
  • Validate that 'UI Jurisdiction' checkbox is NOT checked
  • Verify FLI and MLI Status is set to Not Applicable
  • In the State Withholding Elements section, select Special Withholding Tax Status of None
  • Update Tax Marital Status (based on MA M-4)
    • Select S, Single, if MA M-4, line 1 has a value
    • Select M, Married, if MA M-4, line 2 has a value
    • Select H, if Head of Household, box 5A is checked
    • Select T, if Married or Single with 1 Blind Exemption, box 5B OR 5C is checked (cannot be both, see below)
    • Select V, if Married with 2 Additional Blind Exemption, box 5B AND 5C is checked
    • Select Y, if Head of Household and Blind Exemption, box 5A and 5B, or 5C is checked
    • Select X, if Exempt, box 5D is checked
      • NOTE: if X is entered, update Special Withholding Tax Status to Maintain Taxable Gross
  • Enter Withholding Allowances from MA M-4, line 4
  • Enter Additional Amount - if applicable, from MA M-4, line 5
  • Click SAVE

             

3. Enter Tax Distribution to MA 100% (employees are defaulted to WI).   Path: Payroll for North America/Employee Pay Data USA/Tax Information/Update Employee Tax Distribution

  • Add a new row for MA 100% tax distribution for each employee record. Use the same effective date as W4 page.

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If Employee is a Legal Resident of Michigan:

NOTE: We are required to collect and MI-W-4 for all MI reporting and withholding. 

1. Add a new State Page in Update Employee Tax Data.  It will default to WI, make the following changes on the WI row:
  • Uncheck the 'Resident' checkbox
  • Validate that 'UI Jurisdiction' checkbox is checked
  • Check 'Non-Residency Statement Filed' check box
  • Special Withholding Tax Status should be set to No Taxable Gross; No Tax Taken
  • In the 'UW Special Tax Form Code' section add the Tax Form Renewal code '07'

2. Add a new row under 'State Information' section by clicking the 'plus sign' icon to enter MI withholding detail.

  • Update the 'State' field to reflect MI as the state to withhold for
  • Check 'Resident' box
  • Validate that 'UI Jurisdiction' checkbox is NOT checked
  • In the State Withholding Elements section, select Special Withholding Tax Status of None
  • Update Tax Marital Status to Not Applicable or Exempt
    • NOTE: if Exempt is selected, update Special Withholding Tax Status to Maintain Taxable Gross
  • Enter Withholding Allowances from MI-W4, line 6
  • Enter Additional Amount - if applicable, from MI-W4, line 7
  • Click SAVE
           
3. Enter Tax Distribution to MI 100% (employees are defaulted to WI).   Path: Payroll for NA/Employee Pay Data USA/Tax Information/Update Employee Tax Distribution
  • Add a new row for MI 100% tax distribution for each employee record. Us the same effective date as W4 page.

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If Employee is a Legal Resident and WORKS in Minnesota:

NOTE: we need to also collect W-4MN for all MN reporting and withholding.
1. Add a new State Page in Update Employee Tax Data.  It will default to WI, make the following changes on the WI row:
  • Uncheck the 'Resident' checkbox
  • Validate that 'UI Jurisdiction' checkbox is checked
  • Check 'Non-Residency Statement Filed' check box
  • Special Withholding Tax Status should be set to No Taxable Gross; No Tax Taken
  • In the 'UW Special Tax Form Code' section add the Tax Form Renewal code '07'

2. Add a new row under 'State Information' section by clicking the 'plus sign' icon to enter MN withholding detail.

  • Update the 'State' field to reflect MN as the state to withhold for
  • Check 'Resident' box
  • Validate that 'UI Jurisdiction' checkbox is NOT checked
  • In the State Withholding Elements section, select Special Withholding Tax Status of None
  • Update Tax Marital Status, based on MN W-4
    • NOTE: if Exempt is selected, update Special Withholding Tax Status to Maintain Taxable Gross
  • Enter Withholding Allowances from MN-W4, line 1
  • Enter Additional Amount - if applicable, from MN-W4, line 2
  • Click SAVE

         

3. Enter Tax Distribution to MN 100% (employees are defaulted to WI).   Path: Payroll for NA/Employee Pay Data USA/Tax Information/Update Employee Tax Distribution
  • Add a new row for MN 100% tax distribution for each employee record. Us the same effective date as W4 page.
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If Employee is a Legal Resident and WORKS in Montana:
1. Add a new State Page in Update Employee Tax Data.  It will default to WI, make the following changes on the WI row:
  • Uncheck the 'Resident' checkbox
  • Validate that 'UI Jurisdiction' checkbox is checked
  • Check 'Non-Residency Statement Filed' check box
  • Special Withholding Tax Status should be set to No Taxable Gross; No Tax Taken
  • In the 'UW Special Tax Form Code' section add the Tax Form Renewal code '07'

2. Add a new row under 'State Information' section by clicking the 'plus sign' icon to enter MT withholding detail.

  • Update the 'State' field to reflect MT as the state to withhold for
  • Check 'Resident' box
  • Validate that 'UI Jurisdiction' checkbox is NOT checked
  • In the State Withholding Elements section, select Special Withholding Tax Status of None
  • Update Tax Marital Status from item 1. or 2. Form MW-4
    • NOTE: if Exempt is selected, update Special Withholding Tax Status to Maintain Taxable Gross
  • Enter Additional Amount from MT Form MW-4, line 3
  • Enter Reduced Amount - if applicable, from MW-4, line 4
  • Click SAVE
         
3. Enter Tax Distribution to MT 100% (employees are defaulted to WI).   Path: Payroll for NA/Employee Pay Data USA/Tax Information/Update Employee Tax Distribution
  • Add a new row for MT 100% tax distribution for each employee record. Us the same effective date as W4 page.
If Employee is a Legal Resident of North Carolina:
1. Add a new State Page in Update Employee Tax Data.  It will default to WI, make the following changes on the WI row:
  • Uncheck the 'Resident' checkbox
  • Validate that 'UI Jurisdiction' checkbox is checked
  • Check 'Non-Residency Statement Filed' check box
  • Special Withholding Tax Status should be set to No Taxable Gross; No Tax Taken
  • In the 'UW Special Tax Form Code' section add the Tax Form Renewal code '07'

2. Add a new row under 'State Information' section by clicking the 'plus sign' icon to enter NC withholding detail.

  • Update the 'State' field to reflect NC as the state to withhold for
  • Check 'Resident' box
  • Validate that 'UI Jurisdiction' checkbox is NOT checked
  • In the State Withholding Elements section, select Special Withholding Tax Status of None
  • Update Tax Marital Status based on NC-4EZ
    • NOTE: if Exempt is selected, update Special Withholding Tax Status to Maintain Taxable Gross
  • Enter Withholding Allowances from NC-4EZ, line 1
  • Enter Additional Amount - if applicable, from NC-4EZ, line 2
  • Click SAVE
         

3. Enter Tax Distribution to NC 100% (employees are defaulted to WI).   Path: Payroll for NA/Employee Pay Data USA/Tax Information/Update Employee Tax Distribution

  • Add a new row for NC 100% tax distribution for each employee record. Us the same effective date as W4 page.
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If Employee is a Legal Resident and WORK in Nebraska:

1. Add a new State Page in Update Employee Tax Data.  It will default to WI, make the following changes on the WI row:
  • Uncheck the 'Resident' checkbox
  • Validate that 'UI Jurisdiction' checkbox is checked
  • Check 'Non-Residency Statement Filed' check box
  • Special Withholding Tax Status should be set to No Taxable Gross; No Tax Taken
  • In the 'UW Special Tax Form Code' section add the Tax Form Renewal code '07'

2. Add a new row under 'State Information' section by clicking the 'plus sign' icon to enter NE withholding detail.

  • Update the 'State' field to reflect NE as the state to withhold for
  • Check 'Resident' box
  • Validate that 'UI Jurisdiction' checkbox is NOT checked
  • In the State Withholding Elements section, select Special Withholding Tax Status of None
  • Update Tax Marital Status based on NE Form W-4N (To the far right of the mailing address at top of the page)
    • Values T and U in HRS are not currently used 
    • NOTE: if Exempt is selected, update Special Withholding Tax Status to Maintain Taxable Gross
  • Enter Withholding Allowances from W-4N, line 1
  • Enter Additional Amount - if applicable, from W-4N, line 2
  • Click SAVE

         

3. Enter Tax Distribution to NE 100% (employees are defaulted to WI).   Path: Payroll for NA/Employee Pay Data USA/Tax Information/Update Employee Tax Distribution

  • Add a new row for NE 100% tax distribution for each employee record. Us the same effective date as W4 page.
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If Employee is a Legal Resident and WORKS in South Carolina:
1. Add a new State Page in Update Employee Tax Data.  It will default to WI, make the following changes on the WI row:
  • Uncheck the 'Resident' checkbox
  • Validate that 'UI Jurisdiction' checkbox is checked
  • Check 'Non-Residency Statement Filed' check box
  • Special Withholding Tax Status should be set to No Taxable Gross; No Tax Taken
  • In the 'UW Special Tax Form Code' section add the Tax Form Renewal code '07'

2. Add a new row under 'State Information' section by clicking the 'plus sign' icon to enter SC withholding detail.

  • Update the 'State' field to reflect SC as the state to withhold for
  • Check 'Resident' box
  • Validate that 'UI Jurisdiction' checkbox is NOT checked
  • In the State Withholding Elements section, select Special Withholding Tax Status of None
  • Update Tax Marital Status based on Form SC W-4, line 3
    • NOTE: if Exempt is selected, update Special Withholding Tax Status to Maintain Taxable Gross
  • Enter Withholding Allowances from Form SC W-4, line 5
  • Enter Additional Amount - if applicable, from Form SC W-4, line 6
  • Click SAVE
         

3. Enter Tax Distribution to SC 100% (employees are defaulted to WI).   Path: Payroll for NA/Employee Pay Data USA/Tax Information/Update Employee Tax Distribution

  • Add a new row for SC 100% tax distribution for each employee record. Us the same effective date as W4 page.
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If Employee is a Legal Resident OR WORKS in Utah:

Note: Utah uses the Federal W-4 form

1. Add a new State Page in Update Employee Tax Data.  It will default to WI, make the following changes on the WI row:
  • Uncheck the 'Resident' checkbox
  • Validate that 'UI Jurisdiction' checkbox is checked
  • Check 'Non-Residency Statement Filed' check box
  • Special Withholding Tax Status should be set to No Taxable Gross; No Tax Taken
  • In the 'UW Special Tax Form Code' section add the Tax Form Renewal code '07'

2. Add a new row under 'State Information' section by clicking the 'plus sign' icon to enter UT withholding detail.

  • Update the 'State' field to reflect UT as the state to withhold for
  • Check 'Resident' box
  • Validate that 'UI Jurisdiction' checkbox is NOT checked
  • In the State Withholding Elements section, select Special Withholding Tax Status of None
  • Update Tax Marital Status based on Federal W-4, line 1c
    • NOTE: if Exempt is selected, update Special Withholding Tax Status to Maintain Taxable Gross
  • Click SAVE
         

3. Enter Tax Distribution to UT 100% (employees are defaulted to WI).   Path: Payroll for NA/Employee Pay Data USA/Tax Information/Update Employee Tax Distribution

  • Add a new row for UT 100% tax distribution for each employee record. Us the same effective date as W4 page.

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If Employee is a Legal Resident of Virginia:
1. Add a new State Page in Update Employee Tax Data.  It will default to WI, make the following changes on the WI row:
  • Uncheck the 'Resident' checkbox
  • Validate that 'UI Jurisdiction' checkbox is checked
  • Check 'Non-Residency Statement Filed' check box
  • Special Withholding Tax Status should be set to No Taxable Gross; No Tax Taken
  • In the 'UW Special Tax Form Code' section add the Tax Form Renewal code '07'

2. Add a new row under 'State Information' section by clicking the 'plus sign' icon to enter VA withholding detail.

  • Update the 'State' field to reflect VA as the state to withhold for
  • Check 'Resident' box
  • Validate that 'UI Jurisdiction' checkbox is NOT checked
  • In the State Withholding Elements section, select Special Withholding Tax Status of None
  • Update Tax Marital Status to Not Applicable
    • If line 3 or 4 of VA-4 checked, select Exempt
      • NOTE: if Exempt is selected, update Special Withholding Tax Status to Maintain Taxable Gross
  • Enter Withholding Allowances from Form VA-4, line 1a
  • Enter Additional Amount - if applicable, from Form VA-4, line 2
  • Enter Additional Allowances - if applicable, from Form VA-4, line 1b
  • Click SAVE
         
3. Enter Tax Distribution to VA 100% (employees are defaulted to WI).   Path: Payroll for NA/Employee Pay Data USA/Tax Information/Update Employee Tax Distribution
  • Add a new row for VA 100% tax distribution for each employee record. Us the same effective date as W4 page.
If the Employee is an International Nonresident Alien for Tax Purposes:

1. In the State Information Section:
  Leave the default values "as is" (Resident and UI Jurisdiction checked)
  In the Special Withholding Tax Status leave the default value of "None"

state non reciprocity

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Update W-4 Tax Status for Existing Employees

Employees may submit updated tax withholding information throughout their employment for Federal and/or State purposes. Once the departments receive these W-4s, the employee's information will need to be updated accordingly. To update an Employee's Tax Form W-4 (Employee's Withholding Allowance Certificate) in HRS (Existing Hire):

1. From the PeopleSoft HRS Main Menu, navigate to: Payroll for North America > Employee Pay Data USA > Tax Information > Update Employee Tax Data.

2. In the Update Employee Tax Data screen, enter the 8-digit employee ID in the EmplID field, and click the Search
3. The Federal Tax Data tab displays for the employee. Verify the employee name and Person ID (also known as Empl ID).
4. Verify that there is not a Lock - in letter documented (check mark) on either the Federal or State Page.

warning sign   If there is a lock-in letter documented, contact the Service Center.

5. Add a new ROW on the Effective Date section for the new W-4 Form (click the Plus icon, located in the Effective Date section on the Federal Tax Data Page, which will also add a row to the State Tax Data page).
6. In the new Effective Date field, change the current date to the day of the new W-4 form received.
7. Review and update the Federal Tax Data and State Tax Data Pages as appropriate, see above for details on how to change this field if applicable.
8. To save the W-4 record for the new employee, click Save, located at the bottom of the screen.

Keywords:
HRS tax form W-4 W4 withholding allowance certificate federal state local international non-resident nonresident married single marriage reciprocity agreements Illinois Indiana Kentucky Michigan training PY, Payroll PY, Payroll PY, Payroll 
Doc ID:
16889
Owned by:
Julia W. in UW–Shared Services
Created:
2011-02-13
Updated:
2025-02-17
Sites:
UW–Shared Services