Federal and State Tax Withholding Forms

Annual W-4 Notice

There is a little known IRS regulation that requires employers to remind employees to file an amended W-4 if they have had some changes since their last W-4 was filed.  The notice must be provided by December 1 each year. How the notice is sent out is not required, but paycheck inserts might be the best vehicle. There are a variety of withholding calculators on the IRS's web site and on various commercial internet sites that can be helpful. Note: employees may want to adjust their state and local law withholding as well if applicable (see also http://tinyurl.com/3p2hafa). To cut down on the number of employee questions, it may be useful to have a copy of Publication 505, Tax Withholding and Estimated Tax(2014) for the employee to reveiw. The IRS has a poster that might be useful as well.

The exact IRS regulation is Reg. 31-3402(f)(2)-1(c)(3) which requires employers to remind their employees to file an amended W-4 if their filing status, exemption allowances or exempt status has changed since their last filing of their Form W-4.

Employees may want to consider changing their state withholdings (if applicable). A review of withholding should also be done by employees after certain life-events, such as birth of child, child no longer a dependent, adoption, marriage, divorce, etc.

The IRS has not issued a sample notice for employers to use, however below are some samples that might be useful.

Tax Withholding Adjustment Reminder: If your tax filing status changed this year (e.g., married, divorce, change in dependents, exempt status, etc.), the IRS encourages you to amend your W-4 tax withholding form by the start of the new year. See (payroll dept) to amend your federal and/or state withholdings. This website might be helpful in deciding what changes to make. http://tinyurl.com/3p2hafa

OR

Tax Withholding Adjustment Reminder: It is time for employees to review their current Form W-4 (Employee's Withholding Allowance Certificate) status for preferred changes in filing status and/or number of allowances needed for tax year 201X.  See (payroll dept.) to amend your federal and/or state withholdings.

OR

If you were claiming Exempt from Federal or State withholding on your 201X Form W-4, these forms will expire February 16, 201X. If you are filing exempt, and a new form is not received in time to process payroll, IRS regulations require us to change your allowances to zero and your filing status to single until a new form is received.

OR

TO: All Employees

IRS regulations (IRS Reg. SS31-3402(f)(2)-1(c)(3) requires employers to remind employees to submit Form W-4 (see link below), Employee's Withholding Allowance Certificate, if your filing status, exemption allowances, or exempt status has changed since the last filing of your Form W-4.

If you have not had changes, there is no requirement that a new form be submitted just because the tax year on the form has changed.

If you are currently claiming exempt status, your exemption for 201X expires February 17, 201X and will need to complete and submit prior to this date to keep your exempt status. If you do not complete a new W-4 form by this date, your tax status will change to Single and zero allowances.

Below is a link to the interactive copy of the 201X W-4 (you can fill it out via computer) Please sign, date, and return to me. http://www.irs.gov/pub/irs-pdf/fw4.pdf?portlet=103

OR

The Holidays and Year End are upon us. There are two things I need to remind you of.

First, that W-2s will be processed after the last payroll of the year, pay period ending xx/xx/xx. Any addresses in the system at that time are the addresses that the W-2s will be sent to. If you have moved during the last year and have not updated your address in the Paycom portal, please log onto the Paycom portal and make your address changes. W-2s will also be available on line thru the Paycom portal after January 31,  201X.

Second, if you have had any W-4 allowance changes that would cause an increase or decrease in the number of allowances you can claim, such as marital status, or the birth of a baby, you will need to fill out a new W-4 or log onto the Paycom portal and change your W-4.

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