potrzuski[at]hotmail.com (Joann) writes:

- quote -

Let's start at the beginning. Your employer must withhold
based on your W-4. You cannot use the "Exempt" option on the
W-4 unless you meet the criteria (you don't). You can claim
99 (or whatever ridiculous number) of allowances before the
bonus is paid so that there will be no withholding. Your
employer will be required to send a copy of the W-4 to the
IRS, which may or may not inquire of YOU for the
justification. By that time you will have given your
employer a new W-4 and there will be no issue.

Now, let's talk real world. Your employer clearly doesn't
want this hassle. It's your choice as to whether you push
it.

Phil Marti
Topeka, KS

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Joann wrote:

- quote -

You are entirely correct. It is not a red flag; heck, not
even a pink flag.

Cheer$,
Harlan Lunsford, EA in LA

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Question about Employee withholdings through payroll: When
you claim your tax status (usually 0-9/single married) the
payroll company witholds a certian percentage of your
earnings. You can also ask the payroll company to not
withold any taxes, in the Federal and State brackets
according to Paychex. My reasoning for this is I had
taxes withheld forcasting that I would make a larger amount
of money for 2003 than I really am going to because I left
my job. Now I have a large commision check, the last income
for the year, and I do not want to have fedral taxes witheld
because I will not owe that much in the end AND I need the
money now, not next spring. The payroll service, Paychex,
said it is completely legal for me to do this BUT my
employer said it will be a red flag to the company tax wise.
How/why would this affect the Employer (an LLC) if I decide
to not have any personal taxes witheld from a check? It
seems like it should not really affect the company because
they are taxed on the amount they pay me separate from my
own person taxes and personal witholdings. Help!

thanks - Joann

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