Form W-4 for 2017: Best Practices and Compliance Requirements
Duration: 90 Minutes
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Form W-4 has just seven lines but it is a fundamental part of the payroll process. In addition to information concerning the amount to withhold for income tax, the W-4 provides the employer with documentation of due diligence in soliciting employee name, Social Security Number, and address information. It is critical for penalty mitigation in the event the information is incorrect.
10/12/2017 11:30 AM10/12/2017 05:30 PMTraining Topic: Form W-4 for 2017: Best Practices and Compliance RequirementsInstructor: Patrick A. Haggerty
The Form provides a basis for the employee to have the correct amount of tax withheld, but if it is prepared incorrectly, the employee may be subject to penalties. While the employer is not responsible for assuring correctness of the employee's claims, the employer is responsible for due diligence with regard to invalid forms and withholding according to the employee instructions provided by the form.
Improper handling of the information can create problems in payroll compliance and employee morale as well as costly expenditures for error corrections and non compliance.
This webinar will discuss the function and requirements of Form W-4 and how the information it provides is critical to the payroll process as well as how to avoid problems and identify and correct problems such as invalid or improperly filled out forms and errors in processing. It will also discuss the proper handling of special situations and requirements such as exemption from withholding and nonresident alien W-4 Forms.
Objectives of the Presentation
Understand the employer's legal obligation to withhold tax
Know what must or must not be included on each line of Form W-4 and how to identify invalid Forms
Understand the importance of SSN verification and how to include it in the payroll process
Know how to deal with special problems and situations related to Form W-4 such as non-resident alien forms, lock in letters and invalid and questionable employee submissions
Be aware of the penalties for non-compliance and how to mitigate or avoid the penalties by following due diligence procedures that establish reasonable cause
Know the record retention requirements
Be aware of the special requirements for electronic W-4 Forms
Be aware of state withholding certificate requirements
Why Should you Attend
While Form W-4 has only seven information lines, the information contained on the Form is critical to the payroll process. Failures at the employer end can lead to compliance and employee morale issues with regard to amounts withheld, timely processing, and incorrect information returns. Employers may be held liable or penalized for incorrect withholding where the employer failed to solicit or timely process the forms or fails to withhold according the information provided on the forms.
The legal requirement that the employer withhold income tax from employee compensation
Form W-4 line by line including the information to be included by the employee and entries that can cause the form to be invalid, the special instructions for nonresident aliens, state withholding certificates and certificates of non-residency, and effective dates for new and revised W-4 information
When an employee must submit a new W-4 and when an employee may submit a new W-4
Requirements for electronic W-4 Forms
How to deal with problems such as invalid or incorrectly prepared forms, name and Social Security Number mismatches, notices from the IRS or Social Security Administration, and lock in letters. The difference between invalid forms and questionable forms
When W-4 Forms must be sent to the IRS
The IRS matching process and how to use the Social Security Number Verification System and how to make verification part of the payroll process
Penalties for failing to withhold or deposit tax and reporting errors
Establishing reasonable cause for avoidance of penalties and taking advantage of de minimis error exceptions to penalties
Record retention requirements - how long must an employer maintain the forms including successor employer requirements
Who will Benefit
Tax Compliance Officers
Employee Benefits Administrators
Officers and Managers with Payroll or Tax Compliance Oversight