to federal w/h or not

T · June 2005

I am preparing a severance pkg for a long time ee. She has requested that no fed tax be taken out. Can I do that? If not, what is the minimum amount I can withhold?

Thanks.
t

E Wart · June 2005

I believe you have to withhold what the employee puts on their tax form. However, if they use more than 9 exemptions, you have to notify the IRS. They may not want that to happen.
E Wart

marc · June 2005

Concur with Ellen. IF you do not withhold, Uncle can come back against you for not doing so. Not only you the company, but you personally as the decision maker.

ritamcguire · June 2005

Yes, you do have to withhold and the requirement to send notice to the IRS starts when an employee claims 10 or more exemptions.

to federal w/h or not

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