|Subject:||Claiming Exempt From Withholding||Bulletin No. 88|
The purpose of this bulletin is to explain the procedure for the annual review of employees who claim exempt from Federal and/or State 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 by April 30 each year. The W-4's and IT-2104-Es for the current years exemption are to be retained in the employees payroll office.
A report (NPAY738) identifying employees in your agency claiming Federal and/or State exempt status will be provided in a separate mailing.
If any employee identified as claiming exempt from Federal withholding does not provide you with a new W-4, their status must be changed to Single 0' on the Federal Tax Data 1 Panel.
If any employee identified as claiming exempt from State withholding does not provide you with a new IT-2104-E, their status must be changed to Single 1' on the State Tax Data 1 Panel.
Questions concerning this bulletin should be directed to Denise Shoddy at (518) 473-6336.