Vision Payroll

This week’s question comes from Donna, an office manager. An employee wants to change the number exemptions (withholding allowances) claimed. What should I do? Answer: Have the employee complete and sign Form W-4, Employee’s Withholding Allowance Certificate. Always use the current year version of the form. By completing the Personal Allowances Worksheet attached to the form, the employee can calculate the correct number of allowances to claim to minimize any balance due or interest-free loan to the government. Remember that withholding allowances rarely equal the number of exemptions claimed on a tax return. If an employee is claiming an exemption from withholding, a new Form W-4 must be filed every year by February 15. Once you receive the new W-4, be sure to update your payroll records online or contact Vision Payroll with the updated information.