Professional Resources

IRS Issues Final Rules of Maximum Withholding Exemptions

The IRS recently finalized regulations relating to Form W-4, Employee's Withholding Allowance Certificate. The regulations provide rules for income tax withholding when the IRS notifies an employer of the maximum number of withholding exemptions permitted. The IRS may issue a notice to an employer specifying the maximum number of withholding exemptions permitted for a specific employee, including marital status. In addition, the IRS may issue such a notice after determining that a copy of a withholding exemption certificate submitted to the IRS contains a materially incorrect statement or after the employee fails to respond adequately to a request for verification of the statements on the certificate. The IRS will also provide the employer with a similar notice for the employee, and the employer must furnish this notice to the employee (if still employed) within 10 business days of receipt. The employer must send a written response to the IRS if the individual is no longer employed by the employer. The earliest the notice of the maximum number of withholding exemptions permitted may be effective is 45 calendar days after the date of the notice; however, the notice may specify a later effective date. The employer then must withhold tax in accordance with the notice. After the IRS issues a notice of the maximum number of withholding exemptions permitted, if the employee wants to make a change that results in less withholding, the employee must contact the IRS directly. The employer must disregard a new certificate until the IRS notifies the employer to withhold tax based on the new certificate. However, if the employee furnishes a certificate that would result in more withholding than specified in the written notice to the employer, the employer must withhold tax based on that certificate. IRS Reg. §31.3402(f)(2)-1; 72 FR 38478, July 13, 2007.

IRS's Change Your Withholding Notice (Non-required poster. Employers who have had employees in tax trouble in the past may want to use this notice)

Weather Related Salary Deductions

Federal and State Payroll Tax Calculator

IRS's Employer's Tax Guide (Circular E) Publication 15)

IRS's Employer's Supplemental Tax Guide – Publication 15A

Employer's Tax Guide to Fringe Benefits – Publication 15B

Explanation of New Federal Overtime Rule

State Minimum Wage and Overtime Charts

U.S. Department of Labor Overtime Calculator

U.S. Department of Labor Coverage and Employment Status Advisor at www.dol.gov/elaws/flsa.htm helps identify which workers are employees covered by the FLSA.

U.S. Department of Labor Hours Worked Advisor at www.dol.gov/elaws/esa/flsa/hoursworked provides information to determine which hours spent in work-related activities are considered FLSA "hours worked" and therefore must be paid.

U.S. Department of Labor Overtime Security Advisor at www.dol.gov/elaws/overtime.htm helps determine which employees are exempt from the FLSA minimum wage and overtime pay requirements under the Part 541 overtime regulations.

U.S. Department of Labor Child Labor Rules Advisor at www.dol.gov/elaws/esa/flsa/cl/default.htm answers questions about the FLSA's youth employment provisions, including at what age young people can work and the jobs they can perform.

U.S. Department of Labor Section 14(c) Advisor at www.dol.gov/elaws/esa/flsa/14c helps explain the special minimum wage requirements for workers with disabilities.