NYS Comptroller Seal  

Bureau of State Payroll Services

Date: November 22, 2000

 Bulletin No. 214  


Subject Claiming Exempt From Withholding
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-E’s 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.