| To: | Personnel/Payroll Contacts |
| Subject: | Employees Claiming Exempt Status on Form W-4 and Employees Receiving Advanced Earned Income Credit - 2009 |
| Sent Date: | 11/02/2009 |
Claiming Tax Exempt
If your agency has employees that have claimed 'exempt' from tax withholding during calendar year 2009 the following report is available via the SCO on-line reporting application:
Sysid = AUIS44R (DSP Request Reports)
Report Number and Name = AU447172 Employees Exempt From Fed and State Taxes
Employers are not required to send in W-4s for employees claiming exempt or more than 10 allowances, unless the IRS specifically requests them. Therefore, agencies should not send a copy to DSP, but rather keep the W-4 in the employee’s file. If the IRS requests a copy, DSP will contact the agency for the requested copy.
NOTE: The above report lists all employees currently having a 'certificate for exemption'. If the employee does not file a new W-4 for calendar year 2010, the existing 'certificate of exemption' will expire on February 16th.
In addition, if the employee fails to file a new form W-4 with your agency for 2010, you are required to change their withholding status to ‘S – Single’ and ‘000 – Withholding Allowances’.
Advanced Earned Income Credit
All Advanced Earned Income Credit deductions will be automatically be place in an 'inactive' status effective December 31, 2009.
Eligible employees, wishing to participate, must file a new W-5 form for calendar year 2010. The EIS-EIC forms are due in this office no later than December 24, 2009 to be processed for the January 8, 2010 pay date. You will be notified once the IRS makes the 2010 W-5 form available on their website.
Reminder: It is necessary to attach the W-5 form to the EIS-EIC form for processing.
Any questions concerning this memo should be directed to Leslie Mickelsen at 334-2394.
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