February 20, 2009
Question of the Week: Why Did Federal Income Tax Withholding Start on My Wages?
Filed under: News
Vision Payroll

This week’s question comes from Angela, a part-time employee. I only work a few hours each month to help with school expenses. I claimed exemption from withholding when I started work last year. Yesterday’s check had federal withholding for the first time. Why did federal income tax withholding start on my wages? Answer: Employees who have provided a Form W-4, Employee’s Withholding Allowance Certificate, claiming exemption from federal income tax withholding needed to file a new 2009 Form W-4 by February 16, 2009 in order to continue their exemption from federal income tax withholding. Any employee who did not provide a 2009 Form W-4 claiming exemption before last Monday must have tax withheld based on a previously filed Form W-4 not claiming exemption, if available, or using single, zero allowances, if not. File a new Form W-4 or Formulario W-4(SP), Certificado de Exención de la Retención del Empleado to claim exemption from withholding or to correct the number of withholding allowances claimed. Employers may not refund any federal income tax withheld unless the over-withheld tax was due to a calculation error. Tax properly withheld from an employee who failed to file an updated Form W-4 is not considered tax withheld due to a calculation error. Employers should update the allowances claimed by logging in to their company file or providing Vision Payroll with the updated information.


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