Can a company limit the amount of times an employee wants to go tax exempt throughout a year? Or are they obligated to make the changes as long as the employee provides a properly filled out W4 form?
What an employee declares on the W4 doesn’t matter to you. If you are just sick of processing employees that flip back and forth all the time, just max out the time between changes to the 30 days from the submission date and the next pay period so you technically can only really do 11 changes a year.
From irs.gov…
If you receive a revised Form W-4 from an employee, you must put it into effect no later than the start of the first payroll period ending on or after the 30th day from the date you received the revised Form W-4. You must honor the request unless the situations described in the sections Invalid Form W-4 and Lock-in Letters below apply.
So if you’ve got an employee being a PITA about it, that’s the legal requirement. If you ARE the employee being a pain the ass about it stop being a dick.
I never said I was sick of processing W4s. I’m actually trying to help my employees as they were told they cannot change their W4 more than twice a year because the payroll supervisor says it becomes a liability to the company.
It’a an exemption, not the fucking stock market. No reason to be changing it more than once a year per life changing event {marriage, kid etc}. This is worse than the assholes that day trade their 401k accounts.