Form W-4 & Wage Withholding
Question: If an employee claims more than 10 exemptions on their Form W-4, does the employer have to report this to the IRS? |
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Answer: This requirement has been eliminated:
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In the past, employers had to routinely send the IRS any Form W-4 (PDF), Employee's Withholding Allowance Certificate, claiming more than 10 allowances or claiming complete exemption from withholding if $200 or more in weekly wages was expected.
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Forms W-4 are still subject to review.
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Employers may be directed (in a written notice or in future published guidance) to send certain Forms W-4 to the IRS.
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The IRS also will be reviewing employee withholding compliance and you may be required to withhold income tax at a higher rate if notified to do so by the IRS.
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Page Last Reviewed or Updated: December 04, 2008