This article is for employees and admins who need to understand how to handle state and local withholding forms.
We handle federal and state withholding forms differently. Each form type requires different steps from you.
We automatically generate and store the most recent Federal W-4 form (elections) with each employee’s withholding elections.
Most states, and some local agencies, have their own withholding form. In California and South Carolina, employees fill out and sign their state form in Gusto, and we keep the signed copy. For all other state and local forms, employees sign the form outside of Gusto, and you need to store it for your records.
Note: Some states may have special requirements, like collecting forms annually (for example, some Indiana counties do this) or requiring special forms for military spouses or non-residents. Check your state website for more information.
Important: Setting up state and local withholding forms does not mean we can withhold every local tax for every home and work address. Some local taxes are based on where an employee works. Courtesy withholding does not cover county or city local taxes. So if an employee lives in one local area but works in another, we may not withhold the home local tax automatically.
Employees and admins can still enter or change the state and local withholding elections in their Gusto account.
To update an employee’s state or local withholding:
California and South Carolina: Your employee updates their elections in Gusto, then reviews and signs the updated form there. You do not need to store a separate copy.
Other states with a state or local form: Have your employees sign the updated state or local form outside of Gusto and store it for your records. Then have them update their elections in Gusto.
Employees: Click My profile, select Taxes, scroll to [State] Taxes, and click Edit.
Admins: Go to the employee’s profile, scroll to [State] Taxes on the Taxes tab, and click Edit.
The table below lists whether each state requires you to collect and store a separate state-specific withholding form for each of your employees. You can find the form name for each state below.
Important: We cannot advise on personal withholding elections. If an employee needs personal tax advice, they should consult a CPA or licensed tax advisor.
State
Withholding Certificate(s)
Supported in Gusto?
Alabama
Form A-4, Employee’s Withholding Tax Exemption Certificate
No. Collect the signed form outside of Gusto.
Alaska
Not applicable
Not applicable. No state income tax.
Arizona
Arizona Form A-4, Employee’s Arizona Withholding Election
No. Collect the signed form outside of Gusto.
Arkansas
Form AR4EC, State of Arkansas Employee’s Withholding Exemption Certificate
No. Collect the signed form outside of Gusto.
California
Form DE 4, Employee’s Withholding Allowance Certificate
Yes. Employees fill out and sign it in Gusto.
Colorado
Form DR 0004, Employee’s Withholding Certificate. If an employee does not complete the DR 0004, we’ll calculate Colorado withholding using the information on the federal W-4.
No. If your employee completes it, collect the signed form outside of Gusto.
Connecticut
Form CT-W4, Employee’s Withholding Certificate
No. Collect the signed form outside of Gusto.
Delaware
Form W-4, Employee’s Withholding Certificate
No. Collect the signed form outside of Gusto.
Florida
Not applicable
Not applicable. No state income tax.
Georgia
Form G-4, State of Georgia Employee’s Withholding Allowance Certificate
No. Collect the signed form outside of Gusto.
Hawaii
Form HW-4, Employee’s Withholding Allowance and Status Certificate
No. Collect the signed form outside of Gusto.
Idaho
Form ID W-4, Employee’s Withholding Allowance Certificate
No. Collect the signed form outside of Gusto.
Illinois
Form IL-W-4, Employee’s and Other Payee’s Illinois Withholding Allowance Certificate and Instructions
No. Collect the signed form outside of Gusto.
Indiana
Form WH-4, Employee’s Withholding Exemption and County Status Certificate. You can find more information about the form in this article.
No. Collect the signed form outside of Gusto.
Iowa
Form IA W-4, Employee Withholding Allowance Certificate
No. Collect the signed form outside of Gusto.
Kansas
Form K-4, Kansas Employee’s Withholding Allowance Certificate
No. Collect the signed form outside of Gusto.
Kentucky
Form K-4, Kentucky Withholding Certificate
No. Collect the signed form outside of Gusto.
Louisiana
Form L-4, Employee’s Withholding Exemption Certificate
No. Collect the signed form outside of Gusto.
Maine
Form W-4ME, Maine Employee’s Withholding Allowance Certificate
Scroll and click on the Employment Taxes section to find the current year’s Form W-4ME.
No. Collect the signed form outside of Gusto.
Maryland
Form MW507, Employee’s Maryland Withholding Exemption Certificate
No. Collect the signed form outside of Gusto.
Massachusetts
Form M-4, Massachusetts Employee’s Withholding Exemption Certificate
No. Collect the signed form outside of Gusto.
Michigan
State: Form MI-W4, Employee’s Michigan Withholding Exemption Certificate
Locals: Varies by city
No. Collect the signed form outside of Gusto.
Minnesota
Form W-4MN, Minnesota Employee Withholding Allowance/Exemption Certificate
No. Collect the signed form outside of Gusto.
Mississippi
Form 89-350, Mississippi Employee’s Withholding Exemption Certificate
No. Collect the signed form outside of Gusto.
Missouri
Form MO W-4, Employee’s Withholding Certificate
No. Collect the signed form outside of Gusto.
Montana
Form MW-4, Montana Employee’s Withholding Allowance and Exemption Certificate
No. Collect the signed form outside of Gusto.
Nebraska
Form W-4N, Employee’s Nebraska Withholding Allowance Certificate
No. Collect the signed form outside of Gusto.
Nevada
Not applicable
Not applicable. No state income tax.
New Hampshire
Not applicable
Not applicable. No state income tax.
New Jersey
Form NJ-W4, Employee’s Withholding Allowance Certificate
No. Collect the signed form outside of Gusto.
New Mexico
For New Mexico withholding tax, you should use a federal W-4 and write across the top of that form: “For New Mexico Withholding Tax Only.”
No. Collect the signed form outside of Gusto.
New York
Form IT-2104, Employee’s Withholding Allowance Certificate
No. Collect the signed form outside of Gusto.
North Carolina
Form NC-4, Employee’s Withholding Allowance Certificate
No. Collect the signed form outside of Gusto.
North Dakota
Form W-4, Employee’s Withholding Certificate. This state uses the federal W-4.
No separate state form. Employees sign the federal W-4 in Gusto.
Ohio
Form IT 4, Employee’s Withholding Exemption Certificate
No. Collect the signed form outside of Gusto.
Oklahoma
Form OK-W-4, Employee’s Withholding Allowance Certificate
No. Collect the signed form outside of Gusto.
Oregon
Form OR-W-4, Oregon Employee’s Withholding Statement and Exemption Certificate
No. Collect the signed form outside of Gusto.
Pennsylvania
State: N/A (state assesses a flat income tax rate)
Locals: Residency Certification Form Local Earned Income Tax Withholding
No. Collect the signed form outside of Gusto.
Rhode Island
RI W-4, State of Rhode Island and Providence Plantations Employee’s Withholding Allowance Certificate
No. Collect the signed form outside of Gusto.
South Carolina
SC W-4, South Carolina Employee’s Withholding Allowance Certificate
Yes. Employees fill out and sign it in Gusto.
South Dakota
Not applicable
Not applicable. No state income tax.
Tennessee
Not applicable
Not applicable. No state income tax.
Texas
Not applicable
Not applicable. No state income tax.
Utah
Form W-4, Employee’s Withholding Certificate. This state uses the federal W-4.
No separate state form. Employees sign the federal W-4 in Gusto.
Vermont
Form W-4VT, Employee’s Withholding Allowance Certificate
No. Collect the signed form outside of Gusto.
Virginia
Form VA-4, Employee’s Virginia Income Tax Withholding Exemption Certificate
No. Collect the signed form outside of Gusto.
Washington
Not applicable
Not applicable. No state income tax.
Washington D.C.
Form D-4, DC Withholding Allowance Certificate
No. Collect the signed form outside of Gusto.
West Virginia
Form WV/IT-104, West Virginia Employee’s Withholding Exemption Certificate
No. Collect the signed form outside of Gusto.
Wisconsin
Form WT-4, Employee’s Wisconsin Withholding Exemption Certificate/New Hire Reporting
No. Collect the signed form outside of Gusto.
Wyoming
Not applicable
Not applicable. No state income tax.
Q: Does Gusto support state and local employee tax forms (state W-4 forms)?
A: We collect state and local withholding info. However, we do not fully support most state and local W-4 forms the same way we support the federal Form W-4. The table above lists which forms are currently supported in Gusto (right now, California and South Carolina).
For state forms that are not supported in Gusto:
We collect the tax details that your state requires.
We do not create or store an official copy of the state form for each employee, nor do we collect employee signatures for those forms.
You must collect and keep a signed copy of each employee’s state or local withholding form outside of Gusto.
After you collect the signed form, you or your employees can enter the information in Gusto.
You can upload a copy of the signed form in Gusto for your own records.
Q: Why does Gusto not include “Total Allowances” in the Georgia state income tax calculation?
You may notice differences between Georgia Form G-4 and Gusto's tax calculation. This is expected.
Here’s why: Georgia changed the way employers calculate state income tax withholding. As of 2024, Georgia state income tax no longer uses “Total Allowances.”
However, the Georgia G-4 form still includes fields like “Total Allowances.” The state has not updated the form to match how it calculates the tax. This causes confusion for employees and employers.
Gusto works correctly. Your employee’s Georgia state withholding should be correct.
What you should do:
Keep using Gusto to calculate Georgia withholding.
If an employee says, “Gusto does not match my G-4,” explain that Georgia’s form still shows “Total Allowances.” However, Georgia no longer uses that number in its calculation.
If you want to confirm for your records, you can review pages 46–47 of the Georgia Employer’s Withholding Tax Guide under Percentage Method for Employee Withholding. You can also contact the Georgia Department of Revenue directly.