Blank W4 Form - Download as DOC

							                              W-4 FORM
Blank W-4’s can be downloaded at:
http://www.montana.edu/wwwpn/Taxes/W4.pdf

This is a blank W-4 form:




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   The W-4 is logged in by the Front Desk and then routed to the Personnel
    Technicians.

   The Personnel Technician checks the W-4 for any errors.

    This is an example of an invalid W-4




    This is an example of a valid W-4




   The Personnel Technician then routes it to the Benefits or Payroll Technicians.

   The Benefit or Payroll Technicians enter the W-4 into PDADEDN.



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COMPLYING WITH FORM W-4 REQUIREMENTS
Basic Withholding Allowance Rules
Form W-4 is a basic information form that provides HR / Personnel & Payroll with the
information needed to properly determine the amount of federal and state income tax to be
withheld from the employee's pay. Employees are required by federal law to complete a Form
W-4, “Employee's Withholding Allowance Certificate,” and give it to HR / Personnel & Payroll.
The amount of income tax to be withheld from an employee's pay is dependent upon three
factors:

      The amount of the wages due the employee
      The frequency of payment of the wages
      The withholding allowances, marital status and additional amount, if any, indicated on
       Form W-4.

In order to calculate an employee's pay correctly, HR / Personnel & Payroll must have a Form
W-4 available.


When Must an Employee Complete Form W-4?
Each new employee should complete a Form W-4 on or after the first day of employment. For
employees who already are on the payroll — i.e., they are not new-hires — the following rules
apply:
        Employees who claimed to be exempt from federal income tax withholding in the
         previous year must complete a new Form W-4 by February 15 each year. Exempt W-
         4s expire on December 31st of the year to which they are applicable, but a 45-day
         grace period (to February 15th) is allowed for the filing of a new Form W-4.

          Employees may not claim exempt from Montana State income tax withholding.

          Employees may submit an additional W-4 form for state withholding purposes only.
             Separate forms are also available to claim additional amounts to be withheld for
             state income tax only.

          An employee must complete an amended W-4 within 10 days of any decrease in the
           number of eligible allowances or a change in marital status.

          Employees may submit a revised W-4 whenever they wish to do so.

Exceptions to the Rule
If an employee is working for the University but is not a Montana resident they may be
exempt from state taxes.




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When Are W-4s Effective?
After new employees furnish HR/PP with their first Form W-4, that Form W-4 is made effective
with the first payment of wages paid after the date on which the W-4 was filed.

When a current employee submits a revised Form W-4, in most cases it becomes effective with
the next payroll after the date the revised Form W- 4 was filed and no later than the first pay
period 30 days after the revised Form W-4 was furnished.


Valid and Invalid W-4 Forms
Employers are required to review the W-4 forms they receive from their employees to ensure
that the form is valid. While employers are not required to “police” the W-4 claims of their
employees, they should ensure that the form is properly completed with all necessary
information, and is appropriately signed and dated.

A Form W-4 is invalid in the following situations:

          When there is any alteration, addition, or deletion to the language or format of the
           form, especially with regard to the perjury statement that certifies the accuracy of the
           data;

          If by the date the employee gives you the Form W-4, he or she indicates in any way
           that it is false;

          When an employee who claimed to be exempt from federal income tax withholding
           has not completed a new Form W-4 by February 15.

If a new employee fails to give HR / Personnel & Payroll a Form W-4 or turns in an invalid Form
W-4, taxes must be calculated on the basis of the employee claiming Single with 0 allowances
or based upon an earlier W-4.

Remember that exempt Form W-4s expire on December 31st of each year. Employees
wishing to continue their exempt status in the new year have a 45- day grace period to
file a new W-4 claiming exempt status. If by February 15th, an employee who previously
claimed to be exempt from withholding has not submitted a new Form W-4 for the current
year, taxes are withheld as if the employee were single with zero withholding allowances.

Employees claiming exempt from federal withholding are not exempt from Montana State
tax withholding and may fill out an additional Form W-4 for state withholding purposes,
otherwise state taxes will be withheld as if the employee were single with 0 withholding
allowances.

Student status does not automatically exempt an employee from income tax withholding.




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What Are the Employer's Main Responsibilities for Form W-4?
While employers have a number of responsibilities associated with Form W-4, their basic duties
and obligations include:

      Reject any W-4's that are invalid.

      Withhold at single with zero allowances if the employee has not submitted a W-4.

      Before December 1st, remind employees to complete a new W-4 if their marital status or
       allowances have changed.

      Retain all W-4 forms for a minimum of 4 years.

      Submit to the IRS copies of all exempt W-4s submitted by employees who earn $200 or
       more per week and do not meet the student qualifications.

      Submit to the IRS and Montana Department of Revenue copies of all W-4s submitted by
       employees claiming more than 10 allowances.


Consulting with Employees
Employers should not counsel or advise employees how to fill out their W-4s concerning the
number of exemptions or amount of withholding they should claim.

IRS Publication 919, “Is My Withholding Correct?” and IRS Publication 501, “Claiming
exemptions” can be obtained from the local IRS office or downloaded from the IRS web site at
www.irs.gov




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