Beginning the Cycle Again
You begin the entire cycle again on February 15, which is the date you must request a new W-4 from any employee who claimed an exemption from income taxes the previous year. You probably should send out the forms prior to that date because if the employee does not provide this form by February 16, you must begin withholding taxes from that employee’s income. Taxes withheld until a new form is filed are based on a single employee with zero withholding allowances, which is the highest level of tax to be withheld.
So far we’ve talked about how you report taxes withheld or paid on behalf of your employees. In the next chapter, we look at how owners report their business income.
The Least You Need to Know