STATE OF NEBRASKA
STATE ACCOUNTING MANUAL
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Effective |
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Date |
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W-4 SUBMISSION
REQUIREMENTS |
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2/16/04 |
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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 angencies must change the number of exemptions in
NIS, 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 appliciable number of exemptions so as to
provide intome 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.
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