Exempt Employees need to fill out a New W4

by Ted

On Feb 16, 2009, employers are required to withhold Federal Income Tax from employee who claimed ‘Exempt’ status in 2008 but have yet to complete a new W4 for 2009.   Until a new W4 is provided the employer should withhold as single filing status with zero withholding allowances.

Note. You cannot claim exemption from withholding if (a) your income exceeds $950 and includes more than $300 of unearned income (for example, interest and dividends) and (b) another person can claim you as a dependent on their tax return.



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