Tax withholdings
perplexed
2 Posts
We have apparently had situations where employees have decided to not have their taxes withheld from their paychecks periodically. Our managers just told the payroll clerk to stop their taxes and they would tell them when to restart them.
I was nervous because there was no paperwork or signatures to cover these instances. Just a note in the payroll clerk's file folder. I have now started having managers and employees fill out a new W-4 and G-4 when they want this non-deduction is to take place. When they want the taxes to resume, they have to fill out another form.
It has cut down on the number of managers and employees that have decided to do this but has increased the amount of grumbling. (I can put up with the grumbling, I've raised two children!)I just want to make sure I am handling this in the right way and there are no laws being broken.
I was nervous because there was no paperwork or signatures to cover these instances. Just a note in the payroll clerk's file folder. I have now started having managers and employees fill out a new W-4 and G-4 when they want this non-deduction is to take place. When they want the taxes to resume, they have to fill out another form.
It has cut down on the number of managers and employees that have decided to do this but has increased the amount of grumbling. (I can put up with the grumbling, I've raised two children!)I just want to make sure I am handling this in the right way and there are no laws being broken.
Comments
Nuisance, yes, but legal.
Definitely continue requiring completed W-4's before making payroll changes. They'll get used to it eventually, and will also probably stop making changes so often!
Also make sure the payroll clerk isn't accepting any other changes verbally - like pay increase/decreases, timecard changes, etc. Nothing in payroll should happen without signed documentation from the employee or supervisor.
There was one year that the IRS mailed back a form stating that the employee did not qualify and we had to withhold at a certain rate until notified otherwise.