When Is an Employer Required to Submit a W-4 Form for an Employee?
Form W-4 is a worksheet developed by the IRS to assist business owners in tracking how much to withhold from an employee's pay to pay income taxes. Employers must give a W-4 to each new employee, who then fills it out according to the instructions. The employee selects how many exemptions to claim, based on the number of his or her dependents, and returns the signed form to the employer.
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Filing Requirements
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There is no requirement for employers to file Form W-4 with the Internal Revenue Service. The information that would be on the W-4 will be on Form 941, Employer's Quarterly Federal Income Tax Return, which businesses file monthly or quarterly and which tracks all compensation to employees and taxes withheld.
Record Keeping Requirements
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According to the Internal Revenue Service, you should keep your copy of each W-4, along with Form I-9, which verifies employee immigration status and eligibility to work in the U.S. and all other supporting documents for at least four years.
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Considerations
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Employee situations change from year to year. Employees get married, get divorced, have children or have children die or move out. Ask your employees to fill out a new W-4 each year to update your records and ensure you are withholding the appropriate amount.
Key Dates
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If you have employees claiming exemption from federal withholding requirements on a W-4, those requests expire on February 16 of every year. You should ask exempt employees to file a new W-4 by February 15 if they wish to continue to claim exempt status. Otherwise, you must begin to withhold income taxes.
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