Federal Income Tax Exemption

You can claim exempt from Federal income withholding tax by writing "Exempt" in box 7 on the W-4 form, which means you are certifying you meet both of the following conditions:

• Last year I had a right to a refund of all federal income tax withheld because I had no tax liability, and
• This year I expect a refund of all Federal income tax withholding because I expect to have no tax liability.

By claiming this status, there will not be Federal income tax withheld from your paycheck.  This could affect your tax return filed at the end of the year.  Consult a tax expert if you are unsure if you should claim exemption.

The IRS Publication 505 has provided a flow chart to help you determine if you are eligible to claim exemption on federal income withholding tax.

 

Federal Income Tax Exemption status expires at the end of each calendar year, per IRS regulations.  You must update your W-4 status to continue claiming exemption for the new calendar year.

 

Instructions to update your W-4 online to continue claiming exemption:

 

1. Log into your HR Pay Employee Self-Service

2. Follow the path to W-4 Tax Information:

 

3. Under Claim Exemption change the year to 2019 and check the box confirming you meet the conditions to claim exempt status.  It must have the year 2019 entered to be valid.  Please see the highlighted boxes.

4.  Click Submit

 

Instructions to change your exemption status online:

Follow steps 1 and 2 above to find your W-4 page in HR Pay.

3. Enter the allowances you want to claim.

4. Indicate your marital status.

5. Uncheck the box that indicates you meet the exemption requirements.

6. Click submit.

 

Please contact the Payroll Office if you have any questions or need assistance.