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

Previous Page | Table of Contents | Next Page Right Arrow

Frequently Asked Tax Questions

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

Rev. date: 1/1/2011

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

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, valid 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.

Additional Information

Publication 15 Circular E Employer's Tax Guide Tax Topic 753 Form W-4 - Employee's Withholding Allowance Certificate

Rev. date: 1/1/2011

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
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. The requirement no longer exists.
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 will also continue to review employee withholding compliance. The IRS may send you a letter (commonly called a "lock-in-letter") specifying the withholding rate and allowances to use to calculate the amount of tax to withhold from wages paid to a specific employee.

Additional Information

Form W-4 (PDF) Employees Withholding Allowance Certificate Publication 15 Circular E Employer's Tax Guide Tax Topic 753 Form W-4 - Employee's Withholding Allowance Certificate

Previous Page | Table of Contents | Top of Page | Next Page Right Arrow