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W-4 Submission Requirements

Effective Date 2/16/04

 

The Internal Revenue Service requires employers to submit copies of certain W-4's (Employee's Withholding Allowance Certificate) with the quarterly filing of the form 941 (Employer's Quarterly Federal Tax Return), which is filed for the State by State Accounting. The W-4's that must be filed are for employees who:

1)   claim more than ten withholding allowances, or

2)   claim exemption from income tax withholding and their wages are more than $200 a week at the time the W-4 is filed.  Employees may claim total exemption from income tax withholding if they have incurred no income tax liability for the preceding tax year and anticipate no liability for the current tax year.  For existing employees a new W-4 must be filed by February 15th of each year that the exemption is to be continued.

The IRS will accept photocopies, carbons and handwritten or typed copies of the form W-4, provided all information is complete.  The W-4 need not be filed with State Accounting if the employee terminates anytime during the quarter.

Employees may file a new W-4 at any time (with justification) and agencies must change the number of exemptions in EnterpriseOne (PFC), unless there is a valid reason not to accept the revised W-4.  There is no limit to the number of W-4s an employee may file in one year.  As long as employees file W-4s claiming the applicable number of exemptions so as to provide income tax withholding that approximates or exceeds the income owed for the year, agencies have no basis for not accepting such W-4s.

The IRS may, by written notice, advise the State (employer) that an employee is not entitled to claim the number of claimed withholding allowances or be exempt from withholding. Until otherwise notified by the IRS, the State must withhold based on the maximum number specified in the IRS notice.  The employee may submit a written statement to the State for any change in circumstances or other justification for the claims being made on a new W-4.  The State must submit the new W-4 and the employee's statement to the IRS but disregard the new W-4 until the IRS notifies the State to honor it.

The State must advise the IRS if W-4's are filed which are invalid because of alterations, unauthorized additions or statements made by the employee (oral or written) which indicate the W-4 is false.  The State cannot use the invalid W-4 when computing income taxes and will inform the employee and request a new W-4.  If the employee fails to comply with the request, the State shall withhold based on a prior W-4 which is in effect for the employee, or as though from a single person claiming no exemptions, if a prior W-4 is not on file.