NYS Comptroller Seal

Bureau of State Payroll Services

 

  Date: November 5, 2005  Bulletin No. 439

Subject Claiming Exempt from Federal and/or State Tax Withholding
Purpose To explain the procedure for the annual review of employees who claim to be exempt from Federal and/or State tax withholding.
Affected Employees Employees claiming to be exempt from Federal and/or State tax 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.
Control-D Report NPAY738 identifies employees in your agency claiming Federal and/or State tax-exempt status. This report will be available on December 31, 2003.
Agency Actions If an employee is identified as claiming tax-exempt from Federal withholding and does not provide a new W-4 by February 15, 2004, change their status to 'Single 0' on the Employee Tax Data Page - Federal Tax Data.

If an employee is identified as claiming tax-exempt from State withholding and does not annually provide a new IT-2104-E, change their status to 'Single 0' on the Employee Tax Data Page - State Tax Data.
Questions Questions regarding this bulletin may be directed to the Payroll Deductions mailbox.