Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

This answer was rated:

Can an employee choose to be exempt?

Can an employee choose to be exempt?
Ask Your Own Tax Question
Customer reply replied 4 months ago
Hello
Answered in 19 minutes by:
3/7/2018
Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 18,187
Experience: 15years with H & R Block. Divisional leader, Instructor
Verified

Hello, I'm Robin. Welcome to JustAnswer. I'm reviewing your question now and typing up my reply. I'll post that in just a few moments.

Ask Your Own Tax Question

Only if they meet meet both of the following conditions for exemption.

• Last year they had a right to a refund of all federal income tax withheld because they had no tax liability, and

• This year they expect a refund of all federal income tax withheld because they expect to have no tax liability.

That does not mean that they do not owe but their income is so low that no tax at all is calculated on it.

Please let me know if you need more information.
If not then please scroll up to see the STARS to rate so I am credited. Thank you

Ask Your Own Tax Question
Customer reply replied 4 months ago
I’m confused

About what?

Ask Your Own Tax Question
Customer reply replied 4 months ago
only if they got refunded all of their federal tax but made over a certain amount?
Customer reply replied 4 months ago
as an employer can we deny them from being exempt

No you cannot

Ask Your Own Tax Question
Customer reply replied 4 months ago
if they choose to be exempt we just enter them as exempt?

You can remind them that the IRS may send a lock in letter to request they have Single and ) status if they are not really exempt

Ask Your Own Tax Question
Customer reply replied 4 months ago
they get penalized if they choose to qualify but don’t?

Yes

Ask Your Own Tax Question

You do not know if they are really exempt

Ask Your Own Tax Question

That is why they have to sign the W4 where it says they understand and know

Ask Your Own Tax Question
Customer reply replied 4 months ago
Ok

Confusion gone?

Ask Your Own Tax Question
Customer reply replied 4 months ago
Also if they choose exempt do we pay overtime or no?

That has nothing to do with labor laws that is just for withholding.

Ask Your Own Tax Question

With you mentioning overtime, I would not be surprised if next year you do receive a LOCK IN letter on them and are forced to use Single and 0

Ask Your Own Tax Question
Customer reply replied 4 months ago
when we hire them we put exempt or non exempt on their paperwork

You mean after they complete the W4?

Ask Your Own Tax Question
Customer reply replied 4 months ago
We wait till after they complete that correct

Then yes, in your system or on their paperwork you indicate the exempt status so no income tax it withheld. SS and Medi and everything else still applies.

You must have that W4 with their signature so when they yell at tax time you show them what they claimed

Ask Your Own Tax Question
Customer reply replied 4 months ago
Does the lock in letter affect us or just them

Just them. It tells the employer to not let them change that and that for 3 years they are Single and 0 allowances

Ask Your Own Tax Question
Customer reply replied 4 months ago
Perfect

You are most welcome.
A positive 5 star rating is appreciated so I am credited for assisting.

Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 18,187
Experience: 15years with H & R Block. Divisional leader, Instructor
Verified
Robin D. and 87 other Tax Specialists are ready to help you
Ask your own question now
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a tax professionalLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask Robin D. Your Own Question
Robin D.
Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 18,187
18,187 Satisfied Customers
Experience: 15years with H & R Block. Divisional leader, Instructor

Robin D. is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,512 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

59 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

18,187 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
In SC, are senior citizen employees (over 65) allowed to
In SC, are senior citizen employees (over 65) allowed to choose not to have state tax withheld, or are employers required to withhold regardless of age? … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I suspect a business of changing tax exempts on employees to
I suspect a business of changing tax exempts on employees to deduct more money out of their pay checks where can I get this started today … read more
abci168
abci168
Principal
27 satisfied customers
We are small company (about 15 people) in California that
we are small company (about 15 people) in California that offers HMO health insurance to its employees ONLY. Can we allow employees to add their spouses and Children to the company health plan but at … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
My spouse has worked for the same person for 20 years but
My spouse has worked for the same person for 20 years but has been paid as a 1099 Independent Contractor. He wants to be deemed an employee but would like to know the pros and cons: For an idea: He ma… read more
abci168
abci168
Principal
27 satisfied customers
I am a physician and work through my S Corp business. I am
I am a physician and work through my S Corp business. I am opening up an individual 401K with Vanguard since myself and my wife are the only employees. Can I also open a SEP IRA at the same time? Can … read more
abci168
abci168
Principal
27 satisfied customers
We had an international intern coming in this year (under J1
Hello, we had an international intern coming in this year (under J1 visa). Do we need to collect their information through a W9 form?… read more
Jason M. Tyra, CPA
Jason M. Tyra, CPA
Principal
Master\u0027s Degree
167 satisfied customers
I am a small business owner with 1 employee and have a solo
I am a small business owner with 1 employee and have a solo 401k account. Under this 401k, if my employee works 1000 hours or more in the year, I am obligated to give her a 401k contribution equal to … read more
Robin D.
Robin D.
Senior Tax Advisor 4
18,187 satisfied customers
Can I as an employer who has an employee with only a ITIN
Can I as an employer who has an employee with only a ITIN number take him as a payroll deduction on my schedule C tax return? And if so am I in violation of the law because he is here illegally?… read more
Robin D.
Robin D.
Senior Tax Advisor 4
18,187 satisfied customers
I plan conferences. The Supreme Court plans training events
I plan conferences. The Supreme Court plans training events and they are tax exempt for hotel rooms and food/beverage. But because they have their attendees (judges) pay for their hotel rooms individu… read more
abci168
abci168
Principal
27 satisfied customers
I am a US citizen married to a G4 visa holder working for an
I am a US citizen married to a G4 visa holder working for an international organization. My wife has no other source of income. From my understanding, she is not required to file a tax return because … read more
Robin D.
Robin D.
Senior Tax Advisor 4
18,187 satisfied customers
I need to locate information on the requirements of employees
I need to locate information on the requirements of employees that drive a employer provided vehicle. Our business is an electric utility. Employees are assigned a vehicle to conduct the day to day bu… read more
Robin D.
Robin D.
Senior Tax Advisor 4
18,187 satisfied customers
Hi - this is a question regarding Guam taxation. Under Publication
Hi - this is a question regarding Guam taxation. Under Publication 80 a government employer in Guam is exempt from FICA. However, in this case they have chosen to deduct FICA from their employees, pre… read more
Robin D.
Robin D.
Senior Tax Advisor 4
18,187 satisfied customers
I have dual citizenship with the US & Israel No presence
I have dual citizenship with the US & Israel No presence is US during 2010 Are my 2010 wages earned in Israel, paid by Israeli employer exempt from US taxation per Treaty? Is my self-employment income… read more
abci168
abci168
Principal
27 satisfied customers
My husband and I are ministers and we receive housing allowance.
My husband and I are ministers and we receive housing allowance. I am preparing our taxes with Turbo Tax online, and it asked me for the amount of the housing allowance and the qualifying expenses. On… read more
Wallstreet Esq.
Wallstreet Esq.
Tax Attorney
Doctoral Degree
586 satisfied customers
Company is registered in DE, doing business in state of CA.
Company is registered in DE, doing business in state of CA. It's software outsourcing services, so deal can be closed anywhere, as mostly client finds us by website. In contracts place of signing we u… read more
Brenda Guy
Brenda Guy
Certified Public Accountant
Master's Degree
151 satisfied customers
I am a self employeed realtor. Can i use a SEP and contrbute
I am a self employeed realtor. Can i use a SEP and contrbute to it annually per the IRS guidelines. Can other agents who hold their license with my compnay, open their individual SEP accounts. What if… read more
Merlo
Merlo
Tax Consultant
558 satisfied customers
I have employees stating they are exempt from federal and state
I have employees stating they are exempt from federal and state taxes. What paperwork do I need so I can not withhold federal and state taxes?… read more
Merlo
Merlo
Tax Consultant
558 satisfied customers
When processing bonus checks, payroll companies offer the ...
When processing bonus checks, payroll companies offer the option between a "monthly" tax rate or an "annual" tax rate. Annual producing a lower taxation, with more dollars in your bonus, where it's un… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x