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Did You Know? W-4 Adjustments Might Save You Money in 2025

As the new year approaches, now is the time to ensure your federal tax  withholdings are accurate for the upcoming tax year. Ensuring accurate tax withholding helps avoid underpayment penalties and prevents unexpected tax bills during filing season. Updating now can help avoid surprises during tax season, whether adjusting your financial goals, starting a new role, or experiencing changes to your income.

How to Review and Update Your Withholdings

The W-4 form is now conveniently accessible through the UAOnline employee dashboard. Follow these steps to update your federal tax withholdings:

  1. Log into UAOnline.
  2. Navigate to "Employee (Upgraded).
  3. Open the Employee Dashboard and select the Taxes dropdown menu.
  4. Click on "W-4 Employee's Withholding Allowance Certificate."
  5. Use the "Update" button at the bottom of the page to make changes to your withholding.

Important Notes:

  • If claiming "Exempt," leave Steps 2-4 blank. Choose Exempt from the dropdown menu labeled "Deduction Status."
  • IRS instructions are accessible via the "W-4" link at the top of the form, guiding you through the process.
  • Changes to your withholdings will take effect after you click "Certify Changes." Due to the payroll processing timeline, it may take 1-2 pay periods to reflect on your paycheck.

Special Considerations for Employees with Lower Earnings

Some employees, such as student workers or part-time staff, may earn less than $400 per bi-weekly paycheck, falling below the taxable income threshold for federal withholding. While no taxes may be deducted upfront, federal taxes will still apply to your annual income.

What This Means for You:

  • Adjust Your W-4: Use the steps above to request additional withholding to cover any anticipated tax liability.
  • Plan Ahead: If withholding adjustments aren't feasible, consider setting aside a portion of your earnings to ensure you're prepared to pay taxes when filing.
  • Use the IRS Withholding Estimator: This tool helps tailor your W-4 entries based on your income and tax situation, preventing surprises at tax time.

For questions or assistance, contact ua-payroll@alaska.edu or review the detailed .

Did You Know graphicPublished UA News 12/5/2024