- The W-4 form is used to inform the University how much withholding an employee wants deducted from each paycheck.
- Filing exempt from federal withholding
- Both conditions must be met and this is to be determined by the employee
- "Last year I had a right to a refund of all Federal income tax withheld because I had no tax liability and
- This year I expect a refund of all Federal income tax withheld because I expect to have no tax liability."
- The Exempt status expires in February of each year and a new form is to be submitted by the employee if they wish to continue their exempt status (expiration date is printed at the top of every W-4) - If no form is received by the payroll office by the expiration date, the employee is to be set back to Single, with zero allowances or to their last valid W-4 prior to the exempt W-4
- Both conditions must be met and this is to be determined by the employee
- Completing a valid W-4 form
- The Federal Form W-4 was updated for the 2020 tax year resulting from the 2018 tax law changes. To complete the form, please follow steps 1-5 and reference the IRS instructions attached to the form.
- There must be no "clarifiers" added to the form by the employee - Any additional remarks adding information to or taking information away from the form makes it invalid. (IRS Publication 15, Circular E)
- University General Counsel has permitted one exception: Employee can sign the form and add the remark "Without Prejudice" after their signature.
- To Claim Exempt:
- Leave Steps 3 and 4 completely blank - even a zero in these steps is an error
- Write the actual word EXEMPT on the form in the space below Step 4(c)
- Common mistakes
- Claiming dependents and Exemption
- Claiming Exempt with Extra withholding (Step 4(c)) or reduced withholding (Step 4(b))
Reviewed 2020-01-02