How to ask HR to set you up as Exempt from Federal Taxes
How would I ask HR to not take out any taxes from my account? How to implement not paying taxes? My taxes are deducted at each payroll, how can I ask HR to change my tax filing status?
dab Answered question November 6, 2023
There are a few options, but it will depend on your employer. Unfortunately most of them refuse to learn the law because it’s safer to just do what the IRS tells them.
- You can convince them that they are not obligated to withhold or report anything. This is a tough sell, especially for large corporations or small businesses that use large payroll companies.
- You can ask to switch to a W9 contractor. This means they will not withhold anything, but will still report a 1099 at the end of the year. That can be disputed if the money you receive is really not taxable.
- You can tell them to update your W4 to exempt. This option is still available, although the printed form has removed the checkbox. In the instructions, it describes how to still file exempt. If you do this, they can not withhold federal taxes, but they will still withhold social security, medicate, etc. They will also still report everything they paid you on a W2 at the end of the year. If the amounts are wrong, you can dispute them.
dab Answered question November 6, 2023
Write your answer.