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A newly hired EE who is married with two children fails to complete Form W-4 by the first payday. What withholding status does the ER use when calculating the EE's withholding?

a. Married, 2 allowances
b. Married, 3 allowances
c. Single, 2 allowances
d. Single, 0 allowances

User Feob
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1 Answer

2 votes

Final answer:

When a newly hired employee fails to complete Form W-4, the employer defaults to the withholding status of 'Single, 0 allowances' to calculate the EE's withholding.

Step-by-step explanation:

If a newly hired employee (EE) who is married with two children fails to complete Form W-4 by the first payday, the employer (ER) should use withholding status 'd. Single, 0 allowances' when calculating the EE's withholding. This default status is specified by the IRS to ensure that enough taxes are collected throughout the year to cover the EE's potential tax obligation.

User Rodrigo Queiroz
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