W4 questions

[elfling]

A client submitted a W4 to her employer last week, at the employer's request. After speaking with me she realizes she filled it in incorrectly for her current situation. She hopes her employer will allow her to correct it by submitting another signed W4.

The conversation with my client raised some interesting questions. Can an employer refuse to accept a W4 revision? Is there a limit on how many times an employer would have to accept an updated W4? I would expect an employer to become rather irritated if an employee attempted to make a change every pay period. Some companies seem to ask for one every calendar year; others only when a person is first hired. Publication 15 states to remind employees before December 1 to submit a new W4 if withholding allowances have or will change but does not seem to mandate it annually. In fact page 15 says to encourage employees to update.

[jainen]

>>Can an employer refuse to accept a W4 revision?<<

I know good jobs are hard to find, but surely you can do better than a company that doesn't want payroll records to be accurate.

[Janitor Bob]

A client submitted a W4 to her employer last week, at the employer's request. After speaking with me she realizes she filled it in incorrectly for her current situation. She hopes her employer will allow her to correct it by submitting another signed W4.

The conversation with my client raised some interesting questions. Can an employer refuse to accept a W4 revision? Is there a limit on how many times an employer would have to accept an updated W4? I would expect an employer to become rather irritated if an employee attempted to make a change every pay period. Some companies seem to ask for one every calendar year; others only when a person is first hired. Publication 15 states to remind employees before December 1 to submit a new W4 if withholding allowances have or will change but does not seem to mandate it annually. In fact page 15 says to encourage employees to update.

One of the hats I wear in my "real" job is payroll manager. My understanding was that W-4 should be filled out at least once per year, but that they could be submitted by employees ANY time AS OFTEN AS THEY DESIRE. However, I cannot, at this time, point you to any rule or publication that states as such.

[Byron]

One of my payroll clients was a non-profit with 60 employees, mostly part-timers, many temporary, so about 90 W-2s. Previous director always had every employee do a new W-2 each year. What a PIB! Most people can't remember how they filled it out last time, so guess who gets all the calls to find out.

I convinced the director that new ones are NOT required -- the one they fill out is good until they want to change. Anytime the employee wants to change is OK -- some do after they get a surprise on their tax return.

However, I do a printout for for the owner/manager near the end of December with all employee names and addresses for them to verify current mailing address so we don't have to deal with employees who can't understand why they didn't get their W-2.

[Tax Prep by Deb]

I actually had a situation where my client accurately filled out a W-4 but the payroll department of his company was not accurately withholding, thus at the end of the year my client was owing. I contacted IRS on behalf of my client to see what could be done to get the payroll department to correct their problem (payroll department insisted there was no problem however I created the same check through my payroll program and got a completely different set of numbers) IRS told me that there was nothing they could do to make the company correct it's problem because my client has the right any time to go and make a change to his withholding via W-4.

I would take from this that there is no limit nor time frame in which to file a W-4. In the businesses I have worked with we always encouraged the employees to keep us current with there desire, afterall it really isn't that difficult to make the change!

Just my two cents worth!

Deb!

[kcjenkins]

I have known a few businesses over the years, apparently run by jackasses, who insisted that the employee could only file one new W4 a year, in Jan. Of course that is nonsense, because you are supposed to file a new one, for example, when you add a dependent. And clearly not all new babies are born in Dec or Jan. But all the employee can do is to fill out a new W4 and give it to them. It's pretty hard to MAKE them do anything, when raising a stink could lead to getting fired. I think some payroll departments are just full of lazy people who don't want to be bothered with making changes. I have one client who moved 4 years ago, and her W2 still has her old address. They pass out the W2s with the checks, at work, so they just can't be bothered to make that change, I guess.

[elfling]

Thanks for all the input.

I'm hoping my client can get the change she needs made quickly. If not, she is going to owe come April 2009 for 2008.

I also produce payrolls for a few small companies in our area and I remind employees every year that an update to W4 is welcome at any time. Most are happy to just keep things the same. When someone does want to make a change, it truly isn't a hassle. Up until today I really hadn't given any deep thought as to whether or not there was a limit of any kind.

Thanks again!