Form W-4 & Wage Withholding
Question: If an employee claims more than 10 allowances on their Form W-4, does the employer have to report this to the IRS?
No, this requirement has been eliminated. However, Forms W-4, Employee's Withholding Allowance Certificate, are still subject to review. Employers may be directed (in a written notice or in future published guidance) to send certain Forms W-4 to the IRS. The IRS will also continue to review employee withholding compliance. The IRS may send you a letter (commonly called a lock-in-letter) specifying the withholding rate and allowances to use to calculate the amount of tax to withhold from wages paid to a specific employee.
- Publication 15 (Circular E), Employer's Tax Guide
- Tax Topic 753 - Form W-4 - Employee's Withholding Allowance Certificate
Category: Small Business, Self-Employed, Other Business
Subcategory: Form W-4 & Wage Withholding