taxes and protesting the war

System · March 2003

Hi all.
The finance manager for my company recently instructed his payroll clerk to find out the reason why an employee would claim exempt on their W4 and if it did not fall under certain categories then to not allow the ee to claim exempt.
I have an employee who wants to claim exempt to protest the war which, of course, doesn't fit into any of the categories. I always thought that a person's decision of what to claim was between them and the government. I don't think I can go back to this ee and TELL her what to claim.Unfortunately this has come up during the Finance Managers vacation and he is unreachable. In order to pay this person we need to enter SOMETHING! The payroll clerk is refusing to override her boss's orders (I don't blame her)and I am at a loss for what to do.
Any advice out there?

Balloonman · March 2003

I would inform them that they are not exempt, and that if they do not indicate the number of withholdings they would like you will input zero. Tell the person feel free to attend any anti-war protest they like, but their feelings do not exempt them from taxes. If it is a brand new employee, you might have the discussion that this is not an ideal way to begin employment.
My $0.02 worth.
DJ The Balloonman

HRsage · March 2003

[font size="1" color="#FF0000"]LAST EDITED ON 03-03-03 AT 02:00PM (CST)[/font][p] I always thought
>that a person's decision of what to claim was between them and the
>government. I don't think I can go back to this ee and TELL her what
>to claim.

I always thought this was the case as well. We can tell an ee what they can and can not claim?? Had the ee not told the reason was (the war) could we inquire as to what the reason was? I just always thought it was between them and the government. If they want to claim exempt they'll have to explain it to the IRS next April and yes it won't fly, but isn't that their own responsibility? Forget about the war, I want to claim exempt to protest taxes!

Anita · March 2003

I have always been lead to believe that as a payroll administrator it was against the law to tell anyone what to claim on their w4, because you are not their tax advisor and should leave it completely up to them. I have employees who claim exempt and I always tell them that they shouldn't because they don't qualify but if they insist on it I do what they write on the w4.

LindaS · March 2003

I agree with what the others have said regarding what to claim - I was always under the impression it was their decision. One additional thing to mention was that I was also under the assumption that when an employee claimed "exempt", a copy of their w4 was sent to the audit bureau (maybe this is just a Wisconsin thing).

Crout · March 2003

Tell them they have to pay EXTRA taxes 'til they get their minds right with the war.

mrbill · March 2003

I feel lucky in that I have a Tax background, which is very helpful in this line of work. In this particular case, I would recommend that you hand the employee a 2nd W-4, and inform him that in accordance with the IRS instructions as you understand them, he does not qualify for exempt status. Give him a quick deadline, due to payroll constraints. If he does not furnish a revised W-4, enter him for (0S) exemptions, inform him of this, and send his original W-4 to the IRS with a cover letter, copy to the employee. The IRS will probably tell you to withhold at (0S), and that's the end of the story.

Don D · March 2003

I have zero tax training and can't get my own straight. But, I can read the admonitions on the W-4 Form. One statement is, "Under penalties of perjury, I certify that I am entitled to the number of withholding allowances claimed, or that I am entitled to claim exempt status". Another is, "You cannot claim exemption from withholding if your income exceeds $700.00". Lastly, the form states, "Failure to provide a properly completed form will result in your being treated as a single person who claims no allowances".

The last of those quotes is particularly clear, since the employer is the only one who can 'treat the employee as a single person who claims no allowances'. I would think that if the employer knows the wages will exceed $700 then the employer would be expected to give the employee another form with the notice that the form is not 'properly completed', or either treat them as single with zero.

Tell her/him to burn a bra/jockstrap instead. In the long run, the protest will prove less costly.

HRsage · March 2003

Good point Don (as usual). But couldn't the ee just put down 9 or 10 allowances and have their taxes reduced that way? Sure it's not exempt but it still might work for their "protest" purposes. The perjury thing would still apply, but again isn't that up to Uncle Sam? I'm not trying to side with the ee I'm just trying to see how they'll try to "work around it". Claiming exempt for protest- where do they come up with this stuff? I don't know, I'm just thinking out loud.

System · March 2003

I work in a liberal, college town who's poulation would love to see a return to the sixties. This is nothing compared to what some people are doing around here. I just wish their "protest" didn't have to give HR and finance such a headache!

hrbanker · March 2003

Circular E, Employer Tax Guide, Page 14. You must send copies of the Form W-4 to the IRS if (1) the employee claims more than 10 exemptions or (2) the employee claims exemption from withholding and his/her wages would normally be more than $200 per week.

Same page: if the employee indicates in any way that the information on the W-4 is false request another form. If they don't give you one, withhold taxes at Single, no allowances. An employee who files a false W-4 can be penalized $500.

I would explain to the emp that the IRS allows one to file exempt if they had no income tax liability the year before and don't expect any this year. Also that you would have to submit the form to the IRS and they might be subject to penalty. I have people who think they are exempt because they got a refund of part of their taxes the year before (they didn't "owe" any taxes). And then there was one last year who told me she was going to change to a religion that doesn't pay tax...

keithlf · March 2003

Tell her to read the top of the form about her rights and then sign her up for the draft!

mrbill · March 2003

As a 2nd reply, If one claims 9-10 exemptions, and you have no knowledge of why they are claiming such a high #, put it thru the payroll system, and at the same time send it to the IRS with a note, copy to employee, asking the IRS to validate the W-4. From experience, you will get back a note from the IRS informing payroll to withhold at (0S) status.

taxes and protesting the war

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