December, 2000
Q. What
is the employer's responsibility if an employee claims more than 10 exemptions
on the W-4 withholding form?
A.The
government imposes a duty on employers who receive a W-4 claiming more
than 10 withholding allowances. The employer must submit a copy of any
such W-4 to the IRS with the employer's quarterly tax return, Form 941.
The employer should continue to withhold on the basis of the W-4 submitted
by the employee unless contacted by the IRS to change it. In that case,
the IRS would have already notified the employee as well. In the case
of New York State withholding, if an employee claims more than 14 withholding
allowances on the IT- 2104 state withholding, the employer must submit
a copy of it to New York State Taxation & Finance.
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