An employee filed a Form W-4 and claimed 22 withholding allowances. The employer should withhold 22% of the worker's gross earnings for federal income taxes until the form W-4 is approved by the IRS.

Question

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The employer should not automatically withhold based on the number of allowances claimed on Form W-4. Instead, they should use the IRS withholding tables or an online calculator to determine the appropriate withholding amount. If the employer believes the number of allowances claimed is incorrect or suspicious, they may ask the employee to provide a new Form W-4. The IRS typically does not approve Form W-4, but they may review it if there is reason to believe it is incorrect or fraudulent. It is important for employees to accurately complete Form W-4 to ensure the correct amount of taxes are withheld from their earnings.

An Employee Filed a Form W-4 and Claimed 22 Withholding