Oklahoma Tax Commission now has its own W-4 form (named OK-W-4) as a response to the changes in the federal tax law. Oklahoma previously used the IRS Federal Form W-4 (Employee’s Withholding Allowance Certificate).
Guidance Concerning the New Change
The new Form OK-W-4 allows single filers to a claim a personal exemption of $1,000 and a standard deduction of $6,350, plus $1,000 for each dependent. In addition, married joint filers may claim a personal exemption of $2,000 and a standard deduction of $12,700, plus $1,000 for each dependent. Find more information on exemption allowance here.
Employees are encouraged to review the new federal guidelines to determine whether their Oklahoma withholding needs adjustment. The agency is encouraging employers to advise their new and current employees of this new form. Please note if an employee wishes to make any changes to their Oklahoma withholding, they should complete the Form OK-W-4 and file it with their employer.
Please visit the following links below for more information:
Oklahoma W-4 Informational Notice
New Oklahoma W-4 Form
Is This Retroactive?
While the new form is effective on January 1, 2018, the agency has pending legislation to address this. An amended rule, which is pending the Governor’s approval, says that Federal Form W-4 may be used to compute Oklahoma withholding if the form was executed prior to March 1, 2018. Employees should complete Form OK-W-4 if changes to Oklahoma withholding should be made, or employment began after February 28, 2018. In the interim, employers are encouraged to review the OK-W-4 Pending Legislation for more details.
Thank you for choosing Paylocity as your Payroll Tax partner. Should you have any questions please contact your Paylocity Account Manager.
This information is provided as a courtesy, may change and is not intended as legal or tax guidance. Employers with questions or concerns outside the scope of a Payroll Service Provider are encouraged to seek the advice of a qualified CPA, Tax Attorney or Advisor.