A W-4 with 100 exemptions?

QUESTIONABLE FORMS W-4 - What Should the Employer Do?

QUESTIONABLE" FORMS W-4 --- What Should the Employer Do? At this time of year, employees often revise their Federal Forms W-4 (Employee's Withholding Allowance Certificate). Employers should be grateful that they are not responsible for verifying the number of allowances claimed by employees on Form W-4. However, in two situations an employer must send to the I.R.S. copies of questionable withholding certificates prepared by their employees:

if the employee has claimed more than 10 withholding allowances.
if the employee claims to be totally exempt from Federal income tax withholding and the employer believes the worker will earn more than $200 a week.

In either case, the employer should send to the I.R.S. a copy of the employee's completed Form W-4 with the employer's corresponding quarterly return (for example, Form 941), even if the withholding certificate no longer is in effect at the end of the quarter. If the employer wishes to submit these certificates before the quarterly return filing date, it should send them to the I.R.S. with a cover letter showing the employer's name, address, and identification number and indicating the number of certificates submitted. Thereafter, the employer should continue to withhold tax based on the employee's Form W-4, until instructed to do otherwise by the IRS.

Also, Form W-4 may be rendered INVALID by the employee making alterations or additions to the form, including crossing out any pre-printed statements on the certificate or adding anything to the pre-printed information beyond the required entries. In most cases, an invalid Form W-4 is simply the result of an employee's honest error. But the employer should not honor an invalid certificate and should ask the employee to complete a new Form W-4. If the employee refuses, the employer should withhold in accordance with a previously submitted valid certificate (if any), or withhold on the basis of a single employee claiming zero allowances.