Changing W4 deductions for severance check

Leah4

I have an employee who asked for as many deductions as possible be taken on his final paycheck. I told him to fill out a new W-4, he wants to take 20 deductions, do I have any obligations? I know he does not have that many legitimate deductions, he simply wants to pay less taxes since he is going to be laid off.
Thanks!

System

Does anyone know if Leah got an answer to her question?

ACU Frank

I don't have a problem with it - especially for one check. It's his decision, in the end.

joannie

Don't you have to mail the W-4 to the IRS if they select 10 or more deductions?

NaeNae55

[QUOTE=joannie;715517]Don't you have to mail the W-4 to the IRS if they select 10 or more deductions?[/QUOTE]

Not since 2005 :ball and chain:

[url]http://www.hrresource.com/articles/view.php?article_id=107[/url]

joannie

Thanks for the link, Nae. I will pass along to my payroll manager. He's still mailing them in.

System

The amount of any federal income tax withholding must be based on marital status and withholding allowances. However, An employee may claim exemption from federal income tax withholding because he or she had no income tax liability last year and expects none this year but they are still subject to social security and Medicare taxes. A W-4 claiming exemption from withholding is valid for only 1 calendar year. To continue to be exempt from withholding in the next year, an employee must give you a new Form W-4 by February 15 of that year. If the employee does not provide a new Form W-4, then you would withhold tax as if the employee is single with zero withholding allowances or withhold based on the last valid Form W-4 you have for the employee.

I’d check with an attorney before contacting the IRS to report excessive withholding allowances. **==