Form W-4 & Wage Withholding (2004 IRS FAQ)
From TaxAlmanac
IRS FAQ 12.4 Small Business/Self-Employed/Other Business : Form W-4 & Wage Withholding
Can an employer take out taxes if a Form W-4 was never filed?
Yes, the employer is required to withhold income taxes. Publication 15, Circular E, Employer's Tax Guide, states that if an employee does not give you a completed Form W-4 (PDF), Employee's Withholding Allowance Certificate, withhold tax as if he or she is single, with no withholding allowances.
The employer is also required to withhold social security and Medicare taxes.
References:- Publication 15, Circular E, Employer's Tax Guide
- Form W-4 (PDF), Employee's Withholding Allowance Certificate
- Form W-4 - Employee's Withholding Allowance Certificate, Form W-4 - employee's withholding allowance certificate
If an employee claims more than 10 exemptions on their Form W-4, does the employer have to report this to the IRS?
No, this requirement has been eliminated. In the past, employers had to routinely send the IRS any Form W-4 (PDF), Employee's Withholding Allowance Certificate, claiming more than 10 allowances or claiming complete exemption from withholding if $200 or more in weekly wages was expected. However, Forms W-4 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 also will be reviewing employee withholding compliance and you may be required to withhold income tax at a higher rate if notified to do so by the IRS.
References:- Form W-4 (PDF), Employee's Withholding Allowance Certificate
- Form W-4 - Employee's Withholding Allowance Certificate, Form W-4 - employee's withholding allowance certificate
Source: IRS.gov
