Are Yearly W-4s Mandatory?

[whatdoiknow]

I was under the impression that a new W-4 was required from each employee for each new year now. Am I wrong? The W-4 instructions don't seem to say that.

[FEDUKE404]

News to me

I was under the impression that a new W-4 was required from each employee for each new year now. Am I wrong? The W-4 instructions don't seem to say that.

I never heard of that rule at all.....and I worked way too many years as an employee.

FE

[KBTS]

No, I do not believe it is. Even the instructions for form W-4 tell the taxpayer they should "consider completing" a new form each year or anytime there is a change in financial situation. Any requirement to complete a new one would be a policy of a company's HR department, not an IRS mandate.

[taxmandan]

It's not required by the gov't. Some HR depts. ask employees to complete a new one every year, probably a CYA thing for them.

[oceanlovin'ea]

depends on company

I have an elderly lady that does a little side job. She doesn't make enough to require filing a tax return as long as there is no FIT. In 2010 she filled out a W-4 and put exempt.
In 2011 they took out taxes and told her she had to fill out a new W-4 every year. So now she has to file a tax return to get her money back.

I told her it was not required by IRS and most companies only change your withholding if you fill out a new one but apparently not the company she works for. So now she will make sure she does that every year.

Linda, EA

[ChEAr$]

I have an elderly lady that does a little side job. She doesn't make enough to require filing a tax return as long as there is no FIT. In 2010 she filled out a W-4 and put exempt.
In 2011 they took out taxes and told her she had to fill out a new W-4 every year. So now she has to file a tax return to get her money back.

I told her it was not required by IRS and most companies only change your withholding if you fill out a new one but apparently not the company she works for. So now she will make sure she does that every year.

Linda, EA

To maintain that "exempt" status, a new W4 is required each succeeding period.

For employees not claiming exempt, the first one submitted is good forever unless employee needs to change sttus.

[whatdoiknow]

Mandatory?

Thanks, to Chears, and everyone!

[Burke]

Chears is correct. It IS required every Jan 1 if you claim "Exempt" from withholding for employment purposes. IRS had too many problems with succeeding years where circumstances changed, and employee had a tax liability.

[oceanlovin'ea]

I will let my client know that. We just thought they were being too picky. Good to know they were doing their job correctly.

Linda, EA

[Gary2]

Related to the exempt case, MA (and I think many other states) require an annual statement or W-4-equivalent for military spouses claiming exemption under the MSRRA.