Federal and State regulations require that employees who claim exemption from Federal and State tax withholding must recertify their claim each calendar year by completing new W-4/DE4 form. The W-4/DE4 is available on the At Your Service Online (AYSO) website. If an employee filed a W-4/DE4 in 2016 for an exemption from federal and/or state income tax withholding, it will expire automatically on February 15, 2017. If the exemption is not renewed, Payroll Services is required to withhold Federal and State tax at the single rate with maximum withholding for all pay days after February 15, 2017.
Notices have already been sent to affected employees’ home addresses. The following information is provided to help you guide your employees if they seek assistance from you on claiming a withholding exemption.
There are two ways for an employee to continue to claim an exemption from Federal or State withholding:
- The employee recertifies his/her exemption via AYSO. The deadline for entering information via AYSO is February 15, 2017 at 3 p.m. When W-4 information is entered online or via the web, a W-4 indicator will be set in the system confirming that a revised W-4 form was filed for exemption for 2017. Note: The indicator will only be set for 2017 if the employee went into AYSO to recertify their exemption after December 31, 2016.
Payroll recommends that employees retain a copy of the web confirmation for their records until they have confirmed that their earnings paid on the February 22 (biweekly) or March 1 (monthly) pay date properly reflects their exemptions.
- The employee may obtain a paper UC W-4/DE4 form from their departmental payroll or HR coordinator or by visiting the Payroll Forms tab of the Controller's Office website. The paper form must be processed no later than February 15, 2017 at 6 p.m.
As the HR Service Center receives paper W-4 forms, information must be entered as follows:
- Federal marital status = see W-4 form
- Federal exemptions = 998
- State marital status = see W-4 form
- State exemption = 998
Contact the Controller's Office Solution Center if you have questions about this process.