Employers are required to obtain a signed IRS Form W-4 when hiring a new employee. Although Form W-4 is revised each year by the IRS to reflect current tax rates, exemption amounts, etc., the form remains valid until an employee provides a new form. In other words, there is no requirement to obtain a new form each year.
The IRS “encourages” employers to remind employees to review the form and adjust their exemptions if the employee has a significant tax overpayment or underpayment on his or her prior year tax return.
For more information about Form W-4 or an employer’s duties in connection with tax deposits, withholding and payroll taxes, contact Tom Hammerschmidt in the Firm’s Ann Arbor office at 734.623.1602.