How do I tell employees they can't claim "exempt" on their w-4 for one pay period.?
They may not be able to claim "exempt" but they can up their allowances. I work for state goverment and we had a one-time bonus of $800 added to our paycheck. Personnel told everyone that they could change their withholding if they wanted to. I did. I went from 0 to 10 allowances for one pay period to get the most money. I think 10 was pretty close to 'exempt' status anyway.
by Celeste - 13 hours ago
Bonuses are withheld at 25% flat. They cannot claim exempt.
by MadMan - 13 hours ago
frankly it is none of your business, it has no bearing on you or your business, its like demanding to prove they have 6 dependents. it is the employees problem if the IRS catches them
by rwa000 - 13 hours ago
I wouldn't even bother, if that is what they want to do. As an employer, you don't have the responsibility of policing your employees interactions with the IRS, which is what W-4 is really for. So if they want to, I would let them. They are the ones that are violating the letter of the law when they claim exempt when not entitled to. Do they really accomplish anything by filing as exempt at your company? Most companies take the option of withholding 25% federal tax regardless of W-4 settings for bonuses and other lump sum payments.
by Bob F - 13 hours ago
A straightforward declarative sentence will do just fine.
by wartz - 13 hours ago
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