Form 101 — Employee Card

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Form 101 is an "employee card" — an official Israel Tax Authority form that gives the employer the correct withholding instructions for income tax and National Insurance. The form is the basis for calculating the tax deducted from your salary each month, and incorrect filing can lead to over-withholding (less cash in pocket) or under-withholding (a tax debt at year-end).

When is Form 101 mandatory?

• At the start of new employment — within one week of beginning work.
• At the start of each tax year — by the end of January each year.
• When personal circumstances change — marriage, divorce, the birth of a child, change of address, change of employment status, etc.

What details are required on the form?

National ID number, residential address, phone number, marital status, spouse details, children's details, and reporting of additional income. The accuracy of these details is critical — they directly affect the credit points you receive and the rate of tax withheld.

Sections of the Form

Section A — Employer Details

Company name, withholding-file number, address. This section is filled by the employer.

Section B — Employee Details

Full name, national ID, date of birth, address, phone, marital status, gender, residency, HMO.

Section C — Children Up to Age 19

Children's names, national IDs, and dates of birth. Basis for calculating credit points for children.

Section D — Income from the Employer

Type of income: monthly salary, salary from an additional position, partial salary, daily wage, pension, scholarship.

Section E — Other Income

Income the employee has from sources other than this workplace — critical for correctly calculating tax withholding.

Section F — Spouse Details

Name, national ID, date of birth, place of work, whether they work and have income. Affects eligibility for credit points.

Section G — Changes During the Year

Any change in family, employment, or financial status during the tax year.

Section H — Request for Exemption or Tax Credit

One of the most important sections — here you request exemption or credit under criteria such as: Israeli resident, disability, eligible community, new immigrant, single-parent family, parents of children, discharged soldiers, and more.

Section I — Tax Coordination

If you have multiple income sources (multiple employers, pension + salary, etc.), you will need a tax-coordination approval from the assessing officer to avoid double withholding.

Section J — Declaration and Signature

The employee's signature confirming the truth of the details. A false declaration is a criminal offense.

Common Mistakes When Filling Out the Form

• Not reporting additional income — leads to under-withholding and a debt at year-end.
• Not requesting due credit points — losing hundreds of shekels a month (single parents, eligible communities, disability, etc.).
• Not updating changes — marriage, divorce, or birth require an immediate Form 101 update.
• Signing an incomplete form — get advice before signing.

How We Help

At Hager-Alperowitz & Co., we accompany salaried employees and employers in everything related to Form 101: correct completion of sections, maximizing credit points, requesting tax coordination in complex situations, and handling tax refunds where you were overcharged. Our firm has four offices across Israel (Ashkelon, Sderot, Petach Tikva, and Jerusalem).