|Date: November 5, 2005||Bulletin No. 439|
|Subject||Claiming Exempt from Federal and/or State Tax Withholding|
|Purpose||To explain the procedure for the annual review of employees who claim to be exempt from Federal and/or State tax withholding.|
|Affected Employees||Employees claiming to be exempt from Federal and/or State tax withholding.|
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-E's for the current year's exemption are to be retained in the employee's payroll office.
|Control-D Report||NPAY738 identifies employees in your agency claiming Federal and/or State tax-exempt status. This report will be available on December 31, 2003.|
If an employee is identified as claiming
tax-exempt from Federal withholding and does not provide a new W-4 by February
15, 2004, change their status to 'Single 0' on the Employee Tax Data Page -
Federal Tax Data.
If an employee is identified as claiming tax-exempt from State withholding and does not annually provide a new IT-2104-E, change their status to 'Single 0' on the Employee Tax Data Page - State Tax Data.
|Questions||Questions regarding this bulletin may be directed to the Payroll Deductions mailbox.|