Lesson 23: Onboarding
About This Lesson: This lesson introduces students to the onboarding process, which begins after being hired and involves completing important employment documents. Students learn about the purpose and proper completion of the I-9 form, which verifies legal eligibility to work in the United States, including understanding acceptable identification documents and employer responsibilities. The lesson also covers the W-4 form, helping students understand how personal factors like marital status and dependents affect tax withholding. Through guided practice and real-world scenarios, students develop the skills needed to accurately complete these forms while recognizing the importance of honesty and accuracy in employment and tax reporting.
Lesson Plan & Other Important Documents
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Do Now / Warm-Up Prompt:
Imagine you just got your first job. What steps do you think happen between being hired and your first day of work?
Follow-Up:
Imagine you just got your first job. What steps do you think happen between being hired and your first day of work?
Follow-Up:
- What documents might your employer ask you to bring?
- Why do you think these documents are important?
What Is Onboarding?
Directions: Watch the video titled "What Is Onboarding?" below and then take quiz 23A on Schoology.
Video Summary: Onboarding is the process that begins after a person is hired by a company and involves formally integrating them into the organization. After going through steps like exploring job options and completing interviews, a new employee enters this phase, which is similar in concept to “getting on board” a ship—except here it means joining a workplace. Onboarding includes a structured set of procedures designed to help new hires get started, and it typically involves completing various required documents and learning about company policies, roles, and expectations.
25: Employee Eligibility Verification
Directions: Watch the video titled "Employee Eligibility Verification" below and then take quiz 23B on Schoology.
This video explains how to complete the Employee Eligibility Verification Form (I-9), which confirms that a new hire is legally authorized to work in the United States. After accepting a job, employees must present specific identification documents, which the employer reviews and records on the form. The employer fills out the verification section, while the employee provides acceptable documents from either List A (such as a U.S. passport, which alone is sufficient) or a combination of one document from List B and one from List C. The video clarifies which document combinations are acceptable and emphasizes that original documents—not photocopies—are required. It also defines key terms like document identification number and expiration date, and explains that a certificate of naturalization is an official government document proving U.S. citizenship for foreign-born individuals.
26: W4 Form
Directions: Watch the video titled "Employee Eligibility Verification" below and then take quiz 23C on Schoology.
What Is A W4 Form?
A W-4 form, officially known as the Employee's Withholding Certificate, is a tax document used in the United States to inform employers of the amount of federal income tax to withhold from an employee's paycheck. Employees complete this form when they start a new job or when they wish to adjust their withholding amount due to changes in personal or financial circumstances, such as marriage, divorce, or having children. By accurately filling out the W-4, employees can ensure that they are neither over-withheld (leading to a larger refund at tax time) nor under-withheld (resulting in a potential tax bill when they file their returns). The IRS offers a tax withholding estimator to help employees complete the form accurately based on their specific situation.
Why is a W4 form important?
A W-4 form is important because it directly impacts the amount of federal income tax withheld from an employee’s paycheck, influencing how much they owe or are refunded when filing taxes. By accurately filling out the W-4, employees can avoid under-withholding, which might result in an unexpected tax bill, or over-withholding, which can reduce their take-home pay unnecessarily. Adjusting the W-4 in response to life changes (such as marriage, having a child, or additional jobs) helps employees manage their finances more effectively by aligning their tax payments with their actual tax liability throughout the year.
What happens if you are not accurate when filling out a W4 form?
If a W-4 form is filled out inaccurately, it can lead to incorrect tax withholding from an employee’s paycheck, causing financial consequences. If too little tax is withheld, the employee may end up with a tax bill, and possibly penalties, when filing their tax return because not enough was paid throughout the year. On the other hand, if too much tax is withheld, it results in lower take-home pay, essentially giving the IRS an interest-free loan until the overpaid taxes are refunded. To avoid these issues, employees should review their W-4 regularly, especially after significant life changes like marriage, divorce, or having children, to ensure the information reflects their current financial situation.
If you have a high number on the W4 do you pay more or less taxes?
On the W-4 form, a higher number in the withholding allowances section (previously used before 2020) or a higher dollar amount in adjustments generally means that less tax will be withheld from your paycheck, leading to a larger take-home pay. This is because more allowances or larger adjustments signal to your employer that you have tax deductions or credits, reducing the amount needed to meet your federal tax obligations. However, underpaying taxes through too few withholdings could result in a tax bill (and potentially penalties) at tax time if enough isn’t withheld to cover your liability.
If a person has an $80,000 salary in New York State, how much of the $80,000 is paid in taxes?
For a person earning $80,000 in New York State, taxes will include federal income tax, New York State income tax, and payroll taxes (Social Security and Medicare). Here’s an estimated breakdown:
Total Estimated TaxAdding these estimates together, the total tax paid might range from $20,120 to $23,620 annually, which is roughly 25-30% of the salary. Exact amounts will vary depending on individual tax deductions, credits, filing status, and local city taxes if applicable.
$80,000 - $23,620 = $56,380
A W-4 form, officially known as the Employee's Withholding Certificate, is a tax document used in the United States to inform employers of the amount of federal income tax to withhold from an employee's paycheck. Employees complete this form when they start a new job or when they wish to adjust their withholding amount due to changes in personal or financial circumstances, such as marriage, divorce, or having children. By accurately filling out the W-4, employees can ensure that they are neither over-withheld (leading to a larger refund at tax time) nor under-withheld (resulting in a potential tax bill when they file their returns). The IRS offers a tax withholding estimator to help employees complete the form accurately based on their specific situation.
Why is a W4 form important?
A W-4 form is important because it directly impacts the amount of federal income tax withheld from an employee’s paycheck, influencing how much they owe or are refunded when filing taxes. By accurately filling out the W-4, employees can avoid under-withholding, which might result in an unexpected tax bill, or over-withholding, which can reduce their take-home pay unnecessarily. Adjusting the W-4 in response to life changes (such as marriage, having a child, or additional jobs) helps employees manage their finances more effectively by aligning their tax payments with their actual tax liability throughout the year.
What happens if you are not accurate when filling out a W4 form?
If a W-4 form is filled out inaccurately, it can lead to incorrect tax withholding from an employee’s paycheck, causing financial consequences. If too little tax is withheld, the employee may end up with a tax bill, and possibly penalties, when filing their tax return because not enough was paid throughout the year. On the other hand, if too much tax is withheld, it results in lower take-home pay, essentially giving the IRS an interest-free loan until the overpaid taxes are refunded. To avoid these issues, employees should review their W-4 regularly, especially after significant life changes like marriage, divorce, or having children, to ensure the information reflects their current financial situation.
If you have a high number on the W4 do you pay more or less taxes?
On the W-4 form, a higher number in the withholding allowances section (previously used before 2020) or a higher dollar amount in adjustments generally means that less tax will be withheld from your paycheck, leading to a larger take-home pay. This is because more allowances or larger adjustments signal to your employer that you have tax deductions or credits, reducing the amount needed to meet your federal tax obligations. However, underpaying taxes through too few withholdings could result in a tax bill (and potentially penalties) at tax time if enough isn’t withheld to cover your liability.
If a person has an $80,000 salary in New York State, how much of the $80,000 is paid in taxes?
For a person earning $80,000 in New York State, taxes will include federal income tax, New York State income tax, and payroll taxes (Social Security and Medicare). Here’s an estimated breakdown:
- Federal Income Tax: With $80,000 in annual income, the federal tax rate falls between the 22% bracket (for income above $44,725 and up to $95,375 for a single filer in 2023). However, federal taxes are progressive, so only a portion of income is taxed at 22%, while lower portions are taxed at 10% and 12%. Estimated federal tax could be around $10,000–$13,000, depending on deductions and credits.
- New York State Income Tax: New York also has a progressive tax rate, with rates between 4% and 6.33% for this income level. For an $80,000 income, New York state income tax might be around $4,000–$4,500.
- FICA Taxes (Social Security and Medicare): These are set at 7.65% of income (6.2% for Social Security and 1.45% for Medicare). For $80,000, this amounts to about $6,120.
Total Estimated TaxAdding these estimates together, the total tax paid might range from $20,120 to $23,620 annually, which is roughly 25-30% of the salary. Exact amounts will vary depending on individual tax deductions, credits, filing status, and local city taxes if applicable.
$80,000 - $23,620 = $56,380
Higher Level Question
How do the requirements and processes of onboarding documents like the I-9 and W-4 reflect broader government regulations, and in what ways can inaccuracies on these forms impact both the employee and employer financially and legally?