Small Business/Self-Employed/Other Business > Form W-4 & Wage Withholding

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Frequently Asked Tax Questions

Small Business/Self-Employed/Other Business - Form W-4 & Wage Withholding

Rev. date: 1/2009

Can an employer take out taxes if a Form W-4 was never filed?

Employee's Withholding Allowance Certificate
Employment Tax
Form W-4
Withholding Tax

Yes, the employer is required to withhold income taxes. Chapter 9 of 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.

Rev. date: 1/2009

If an employee claims more than 10 exemptions on their Form W-4, does the employer have to report this to the IRS?

Employee's Withholding Allowance Certificate
Employment Tax
Form W-4
Withholding Allowances
Withholding Tax

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.
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.


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