Can an employer take out taxes if a Form W-4 was never filed?
Yes, the employer is required to withhold income taxes. 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.
References:
- Publication 15, Circular E, Employer's Tax Guide
- Form W-4 (PDF), Employee's Withholding Allowance
Certificate
- Tax Topic 753, Form W-4 - Employee's Withholding Allowance Certificate
If an employee claims more than 10 exemptions on their Form W-4,
does the employer have to report this to the IRS?
No, 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. However, 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.
References:
- Form W-4 (PDF), Employee's Withholding Allowance
Certificate
- Tax Topic 753, Form W-4 - employee's withholding allowance certificate
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