(a) In general. In
order for an employer to determine the correct amount of taxes to withhold from
an employee's wages, each employee shall complete Form HW-4 (Withholding
Exemption and Status Certificate) or forms prescribed by the department for
each employer who is required to withhold taxes from the employee's wages. Form
HW-4 shall show the employee's marital status, the number of exemptions the
employee qualifies for, the employee's address, social security number, and
signature. If an employee does not furnish Form HW-4 to the employer, the
employer shall withhold tax as if the employee is single and claims no
withholding exemption. At the election of the employer, commercially printed
forms substantially the same as Form HW-4 may be used. However, federal Form
W-4 may not be used.
(b) Exemptions
claimed by employee. The number of withholding exemptions claimed by an
employee shall not exceed the number of exemptions for which the employee
qualifies. If the employee is married, the employee may claim any exemptions to
which the employee's spouse is entitled, but only if the employee's spouse has
not already claimed the exemptions.
(c) No Form HW-4 in effect. The first HW-4
form furnished by the employee shall be effective for the first payroll period
ending on or after the date on which the form is furnished to the employer. If
wages are paid without regard to a payroll period, Form HW-4 shall be effective
for the first payment of wages on or after the date on which it is furnished to
the employer.
(d) Amending Form
HW-4; effective date. If an employee chooses to amend an existing Form HW-4, it
shall be effective no later than the first payment of wages made on or after
the thirtieth day after the amendment is made. If wages are paid without regard
to a payroll period, then Form HW-4 shall be effective for the first payment of
wages. At the election of the employer, however, Form HW-4 may be made
effective prior to this date.
(e)
Change in exemption status, number of exemptions. In general, if the number of
exemptions the employee may claim increases, Form HW-4 may be amended to
reflect the change. If, however, the number of exemptions the employee may
claim decreases, or there is a change in the taxpayer's marital status, the
employee shall amend Form HW-4 to reflect the change within ten days after the
change occurs.
Where changes do not affect the amount of tax to be withheld
until the next calendar year (i.e., death of a spouse or dependent), the
employee shall amend Form HW-4 filed with the employer on or before December 1
of the year in which the change occurs. If the change occurs in December, the
employee shall amend Form HW-4 within ten days after the change occurs.
If an employee no longer qualifies for a complete exemption
from income tax withholding, an amended Form HW-4 shall be filed to reflect the
change and allow for withholding of taxes.
