Are you hiring? Don’t get caught off guard with payroll mistakes! Learn what the IRS expects when it comes to Form W-4, plus what to do if an employee claims exempt or you get a lock-in letter.
#PayrollHelp #SmallBusinessTips #FormW4 #HRCompliance #TaxWithholding
Key Moments
- 00:00 – Welcome and introduction to Form W-4
- 00:45 – What Form W-4 is and why it’s important
- 01:30 – What happens if a W-4 is not submitted
- 02:15 – When an employee claims exempt: requirements and expiration
- 03:30 – Lock-in letters from the IRS: what they are and how to handle them
- 04:50 – Key compliance tips for employers
- 05:20 – Contact info and support offer from AB&P
Key Notes
- Always collect a completed W-4 when onboarding a new employee.
- Employees can only claim exemption if they meet specific IRS criteria, and it must be renewed annually by February 15.
- If the IRS sends a lock-in letter, you must follow their instructions over any new W-4s from the employee.
- Employers remain responsible for correct withholding—understanding W-4 rules prevents costly mistakes.
