By - March 18, 2025
Categories: Bookkeeping, General, Taxes
As an auto repair shop owner, you’re focused on keeping your business running smoothly. That includes ensuring your employees are happy and financially secure. A simple yet often overlooked aspect of this is their W-4 form.
March is the perfect time to encourage your team to review and update their W-4s. Why? Because it leads to fewer tax-related headaches, happier employees, and a better team retention rate.
In this blog post, we’re discussing why W-4 check-ups are important and what you can do to help your employees!
The Importance of a W-4 March Check-Up
Just like a well-maintained vehicle, a paycheck needs regular tune-ups.
March provides a timely opportunity for your employees to:
- Assess their current withholding.
- Make adjustments based on life changes.
- Avoid potential under-withholding penalties.
Why Should You Care About Your Employees’ W-4s?
While you’re not directly responsible for your employees’ individual tax liabilities, providing valuable resources and encouraging proactive review can significantly benefit your staff and, ultimately, your business!
Improve Your Shop Morale
A surprise tax bill can create stress and financial hardship for your employees and their families. When you encourage W-4 reviews, you show your team that you care about their financial well-being and quality of life outside of the shop. This can help boost employee morale and lead to long-term team retention.
Reduce Payroll Confusion
When your staff’s W-4s are up to date, it minimizes the risk of paycheck questions and concerns. This frees up payroll staff’s time and boosts employee confidence. And let’s be honest: employees who feel supported are more productive. It’s a win-win!
Ways to Help Your Team with their W-4s
Your team doesn’t have to do this alone! Here are several ways to support them with their W-4 check-up.
Give Reminders
Send out a friendly reminder to your employees about the importance of reviewing their W-4s. You can use email, bulletin board notices, or a brief team meeting.
Share Resources
Make sure your team has easy access to the latest W-4 form and the IRS Withholding Estimator. Provide links to these resources in a place that is easily accessible.
Offer Support
W-4s can be confusing! Step into your role as a powerful leader by offering a brief Q&A session with your payroll staff or an external tax professional to answer any questions employees may have.
Provide Common Scenarios
Your auto repair shop employees may have fluctuating incomes due to commissions and overtime. Remind your staff to account for these variations when completing their W-4s. Also, remind them of other life changes that require a W-4 update, such as marriage, children, or buying a house.
The Bottom Line
Taking the extra step of guiding your employees to review their W-4s offers many benefits to your business.
It significantly reduces stress during tax season and minimizes the likelihood of last-minute payroll adjustments.
It also strengthens your relationship with your employees when you show genuine interest in their financial wellness.
When employees aren’t worrying about unexpected tax burdens, they can focus their energy and attention on their tasks, leading to improved efficiency and a shop that thrives!
By encouraging your employees to take a few minutes to review their W-4s, you can create a more financially secure and satisfied team and greater overall shop success!
Make sure your payroll is handled properly! Contact us to learn more about our Three Rivers Bookkeeping services.
