Q: We have employees who change their W-4 forms on an almost weekly basis. This is becoming very burdensome.has asked whether there are any regulations that allow us to limit the number of W-4 changes employees can make a year. Also, how do you explain to full-time employees that they’re not exempt from paying federal income taxes?
A: There aren’t any tax regulations that allow you to limit the number of times a year employees can refile their W-4s with you. You can, however, take the longest possible time to implement a W-4 change. That might dissuade employees from playing around with their forms.
The rule: You may put a refiled W-4 into effect as soon as possible or wait until the next payday that’s 30 days from the date the employee refiles with you. You’re better off not explaining anything to employees, since whatever you say could be construed as tax advice. Instead, instructions at the top of the W-4 form explain the rules for claiming exempt status for a year, and you should point employees there.