Overview: In response to federal tax changes imposed under the Tax Cut and Jobs Act (TCJA), the state of Oklahoma has created the Employee’s Withholding Allowance Certificate, also known as the OK-W-4.
Effective Date: March 1, 2018.
Details:
Historically, Oklahoma used the federal Form W-4 for state income tax withholding purposes and did not have its own form. Use of the federal Form W-4 for Oklahoma state income tax withholding purposes is no longer allowed.
It is important to note that employees who submitted federal Form W-4 to their employer prior to March 1, 2018, are not required to submit the new Form OK-W-4. However, employees hired on or after March 1, 2018, must utilize the OK-W-4. In addition, employees hired before March 1, 2018 who utilized the federal W-4 must use the new state form going forward.
Oklahoma released the following Informational Notice:
The Oklahoma Tax Commission has introduced an Oklahoma-specific withholding certificate in response to changes in federal tax law. Historically, the OTC used the IRS form W-4; however, with the implementation of the Federal Tax Cuts and Jobs Act, our agency has determined a state-specific form will best suit the needs of our taxpayers. This new form, the OK-W-4, will allow employees to make changes to their Oklahoma withholding for 2018.
Many taxpayers may find that the new federal tax brackets impact their Oklahoma Individual Income Tax liabilities. Please take some time to look over the new federal guidelines to determine if you should adjust your Oklahoma withholding. We encourage employers to advise their new and current employees of the new form. Any employees who wish to make changes to their Oklahoma withholding should complete the OK-W-4 and file it with their employer.
For a copy of the OK-W-4, please click on the link provided below:
https://www.ok.gov/tax/documents/OK-W-4.pdf
Call to Action: If applicable, you must adopt the OK-W-4.
Please contact your Service Team with any questions.