Excess Exemptions

bamahr · July 2003

I read an article that employers were required to submit an employee's W-4 if they claimed 10 allowances or more. Does anyone know about this - I have misplaced the article. I have an employee who claims 14 allowances.

scottorr · July 2003

We outsource our payroll to ADP but they informed us that anyone claiming more than nine exemptions is red flagged by the IRS. We have several ees that claim more than nine. We just let them know that they will be red flagged. I believe what you read is correct.

bamahr · July 2003

I found the information on the IRS website. This employee makes a very good wage, has 14 allowances and claims he still is owed money at the end of the year. I think my husband and I need to use his accountant.

Rockie · August 2003

>I found the information on the IRS website. This employee makes a
>very good wage, has 14 allowances and claims he still is owed money at
>the end of the year. I think my husband and I need to use his
>accountant.

I, too, often wonder how these folks get away with this type of behavior..claiming an excessive number of exemptions and then STILL getting a refund at the end of the year?????

windjam · August 2003

Check out Publication 505, "Tax Withholding and Estimated Taxes", Page 10, RULES YOUR EMLOYER MUST FOLLOW. Gives the information on what W-4's the employer must file with the IRS. The information used to be printed at the top of the W-4, but they have deleted it for some reason. Basically, it's anyone claiming more than 10 allowances or claiming exemption if wages are more than $200 per week

Excess Exemptions

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