State Agencies Bulletin No. 214

Subject
Claiming Exempt From Withholding
Date Issued
November 22, 2000

Purpose

To explain the procedure for the annual review of employees who claim to be exempt from Federal and/or State withholding.

Affected Employees

Employees claiming to be exempt from withholding.

Background

Internal Revenue Service regulations require anyone claiming Federal tax exempt status to file a new W-4 by February 15 each year. New York State Department of Taxation and Finance regulations require anyone claiming State tax exempt status to file a new IT-2104-E, annually. The W-4's and IT-2104-Es for the current year's exemption are to be retained in the employee's payroll office.

Agency Actions

A report (NPAY738) identifying employees in your agency claiming Federal and/or State exempt status is available in Reveal.

If any employee identified as claiming exempt from Federal withholding does not provide you with a new W-4 by February 15, 2001, their status must be changed to 'Single O' on the Federal Tax Data 1 Panel.

If any employee identified as claiming exempt from State withholding does not annually provide you with a new IT-2104-E, their status must be changed to 'Single 1' on the State Tax Data 1 Panel.

Questions

Questions regarding this bulletin may be directed to the Payroll Deductions mailbox.