W-4 Tax Questions

What is a W-4 form?

Employee's Withholding Allowance Certificate

What steps to take if employee doesn't want to allow employer to withold a percentage of income for taxes

Give employee a copy of Certificate of Exemption from Withholding in Lieu of Form W-4/Give Affadavit of Tax Exempt Foreign Status/ Signed letter stating that employer presented employee with a W4 form (send to irs by certified mail)

Can employer force employees to disclose their SSN?

No, according to Section 7 of Public Law 93-579, it is unlawful to withhold rights, benefits and privileges from individuals who don't wish to disclose their SSN

Will the employer be penalized by the IRS if the employee does not want to allow them to withold % of income for taxes?

No, the IRS gives no penalties as long as there is document proof that the employer offered a contract to withhold % of income

Is the employer a holding agent?

No, there is no withholding agent for domestic citizens

What is defined as a domestic citizen?

One who lives and works domestically, has no foreign source of income, amd is not engaged in a excise taxable activity

If an employee wishes to terminate their withholding contract with their employer:

Send letter describIng wish to terminate contract & one to Treasury and ask for the monies withheld to be returned to employee

What government authority does the IRS have?

The IRS is not a government agency and has no authority from Congress to collect taxes

What is the purpose of the W4 form?

information provided on the form determines the percentage of gross pay to be withheld for taxes.

How does an employee fill in a W4 form?

show the number of withholdong exemptions the employee has claimed