W-4 Form when Exempt Payroll error messages

Forum|Forum|4 years ago
March 9, 2022
1 reply
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I have been exempt from paying State, Federal, and FICA taxes due to Notice 2014-7 Since 2017. I filled out my new W-4 Form exactly the same as I always done, by entering "Exempt" under line 4C. The state payroll worker is getting the following error message. "Invalid filing status not allowed with exempt flag of Y." She emailed me the following message.
"She will need to fill out a different w4, correctly and resubmit. If she is unsure of how to complete her W4 for the exempt claim, she will need to contact a tax consultant" regarding this." Since payroll is refusing to fix the issue and help me, does anyone know what the person working in payroll is doing wrong?

Not A Product Question

Best answer by AliciaP1

You need to ensure you only complete (or complete all) the sections required for Exempt status in addition to writing "Exempt" on 4C.

Per IRS Instructions for Form W-4:

To claim exemption from withholding, certify that you meet both of the conditions above by writing “Exempt” on Form W-4 in the space below Step 4(c). Then, complete Steps 1(a), 1(b), and 5. Do not complete any other steps.