logo
Date: November 5, 2004 Bulletin Number: 511
line
 
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 individuals 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 individuals claiming State tax-exempt status to file a new IT-2104-E annually.

The W-4 and IT-2104-E for the current year’s exemption must be retained in the employee’s agency payroll office.

Control-D Report
NPAY 738 identifies employees claiming Federal and/or State tax-exempt status in each agency. This report will be available on December 29, 2004.
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, 2005, the agency must change the employee’s 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, the agency must change the employee’s 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.