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  #1  
Unread 02-24-2009, 02:50 AM
Leah4
 
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Default Changing W4 deductions for severance check

I have an employee who asked for as many deductions as possible be taken on his final paycheck. I told him to fill out a new W-4, he wants to take 20 deductions, do I have any obligations? I know he does not have that many legitimate deductions, he simply wants to pay less taxes since he is going to be laid off.
Thanks!
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  #2  
Unread 03-23-2009, 06:19 AM
Sharon McKnight, SPHR
 
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Default Interesting Question

Does anyone know if Leah got an answer to her question?
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  #3  
Unread 03-23-2009, 09:04 AM
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ACU Frank ACU Frank is offline
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I don't have a problem with it - especially for one check. It's his decision, in the end.
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  #4  
Unread 03-23-2009, 09:18 AM
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joannie joannie is offline
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Don't you have to mail the W-4 to the IRS if they select 10 or more deductions?
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  #5  
Unread 03-23-2009, 10:09 AM
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NaeNae55 NaeNae55 is offline
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Quote:
Originally Posted by joannie View Post
Don't you have to mail the W-4 to the IRS if they select 10 or more deductions?
Not since 2005

http://www.hrresource.com/articles/v...article_id=107
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  #6  
Unread 03-23-2009, 10:38 AM
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joannie joannie is offline
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Thanks for the link, Nae. I will pass along to my payroll manager. He's still mailing them in.
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  #7  
Unread 03-23-2009, 11:22 AM
Sharon McKnight, SPHR
 
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Default Excesssive Withholding

The amount of any federal income tax withholding must be based on marital status and withholding allowances. However, An employee may claim exemption from federal income tax withholding because he or she had no income tax liability last year and expects none this year but they are still subject to social security and Medicare taxes. A W-4 claiming exemption from withholding is valid for only 1 calendar year. To continue to be exempt from withholding in the next year, an employee must give you a new Form W-4 by February 15 of that year. If the employee does not provide a new Form W-4, then you would withhold tax as if the employee is single with zero withholding allowances or withhold based on the last valid Form W-4 you have for the employee.

Id check with an attorney before contacting the IRS to report excessive withholding allowances.
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