Tax Withholding Question

ChristineC68 Posted: Jan 29, 2004 03:38 PM

Tax Withholding Question

For anyone knowledgeable about payroll taxes:

As an employee, is there a limit to how frequently you can change the information on your W-4?

If you are single with no dependents, can you claim 5 dependents on your W-4?

Is this something the employer can in trouble for - not withholding enough taxes?

Thanks!!!

shelzyp Posted: Jan 29, 2004 03:40 PM

Re: Tax Withholding Question

the tax payer will get into trouble, not the employer.

You can cahnge them all the time.

ChristineC68 Posted: Jan 29, 2004 03:43 PM

Re: Tax Withholding Question

Thanks Michele! I was hoping you were around.

One of my co-workers is screwing around with their withholdings and I wanted to make sure we were in the clear. She's HR so I couldnt go to her.

yabbobay Posted: Jan 29, 2004 04:03 PM

Re: Tax Withholding Question

but can't you do whatever you want...and then just pay in April?

isn't there a way to get more back out of your check...since you will get money back from your mortgage interest?

Niecey Posted: Jan 29, 2004 04:15 PM

Re: Tax Withholding Question

I am pretty sure you can put down as many dependents as you want therefore taking out less taxes but in April when you file - you will get killed. This happened to me the first year working here. I didn't know but due to a typo they had me in the system as having 2 dependents - thus taking out less taxes...come that April I had to pay lots of money - I was not happy.

ChristineC68 Posted: Jan 29, 2004 04:29 PM

Re: Tax Withholding Question

I think there are penalties involved if you don't withhold enough - you have to withhold the same or a percentage of what was withheld the prior year. I am not sure though.

I think the W-4 is pretty misleading. As a single person I could have claimed 3 dependents to increase my take home pay. I can only IMAGINE the amount of taxes I would have had to pay come April 15th.

Niecey Posted: Jan 29, 2004 04:51 PM

Re: Tax Withholding Question

This was bothering me so I just asked the lady here who does the payroll taxes for our company (Ithink it bothers me because I support the payroll system and am always dealing with tax issues). She said it doesn't matter what they put - similar to what I said above. The only time the company should care is if they put the number so high that no fed tax is taken. She said soc. sec. and med. are the ones that are percent of salary - does that make sense?