Daycare Tax Tips


Do you have an employee claiming complete exemption from income tax withholding?

What California employers need to know

Both the Federal Form W-4 and the California Form DE-4 allow employees to claim complete exemption from income tax withholding, but this does require some special handling.

If an employee claims more than 10 withholding allowances (on Line 5 of Form W-4 or line 1 of Form DE-4), the employer MUST send a copy of the employee's Form W-4 or DE-4 to the California Franchise Tax Board (FTB).

The employer MUST also send a copy of the employee's Form W-4 or DE-4 to the FTB if an employee writes "EXEMPT " on Line 7 of Form W-4 (or checks the box on line 3 of Form DE-4) AND the employee's weekly wages are expected to be more than $200,

In either case, the employer must provide the employee with a copy of this EDD Notice to Employees, which shows the FTB address where copies of Form W-4 or DE-4 should be sent.


Last updated 30 September 2015

Posted on 2015-09-30 22:02:02

Top