W-4 Hints! Employee updates

Here are some suggestion to employers / managers on w-4 forms. This information came from AIPB

How To Implement a New W-4

—and Handle Complaints

Problem: Employees try to increase their take-home pay by handing in a new W-4 with more withholding allowances or by claiming exempt from withholding.

Solution: Tell employees that you are not required to post the new W-4 until the first payroll period ending on or after the 30th day from the date the new W-4 was submitted (see IRS Circular E). This is the most time that the law allows.

Example: Joe is paid on the 15th and 30th of each month. On September 10, he gives you a new W-4. The September 10th withholding changes must be applied to his paycheck of October 15, the first payroll period following September 30.

If we can be of further assistance visit our web site at www.zibpans.com and check out the payroll tab area.