When Do Tax Forms Need to be Sent to the State?
When employees claim either a large number of allowances or exempt from withholding on their state or federal W-4, the Employees Withholding Certificate is sometimes referred to as a questionable W-4. While the IRS has eliminated the requirement to report Federal questionable W-4s, many states still require employers who receive one of these forms to notify the state. Since states have different requirements, knowing if or when you need to report the Employees Withholding Certificate to the state can be difficult. Use this reference guide to help you stay compliant.
| Report the Withholding Certificate to the state when Employee Claims. | States following this requirement |
| 8 or more | AL, PR |
| 10 or more | DC, SC |
| More than 10 or Exempt | HI, MI, MT |
| More than 10 or Exempt and earns greater than $200/week | CO, MD, OR, WI |
| More than 14 or Exempt | GA |
| More than 14 or Exempt and earns greater than $168.50/week | DE |
| More than 14 or Exempt and earns greater than $200/week | NY |
| More than number on Fed W-4 and greater than 14 | IL |
| More than 22 or Exempt and earn greater than $200/week | IA |
| If request by IRS, also send copy to state. Nonresidents claiming exempt and earns greater than $5000 annually | ME |
| Exempt | PA |
| Exempt and earns more than 3 times the maximum personal exemption amount available to employee based on filing status | CT |
| If requested by IRS, also send a copy to state | ND |
| If you believe the employee is claiming too many allowances | ID, LA, MA, MS, NC, VA |
| Do not send until requested by state | AR, AZ, CA, IN, KS, KY, MO, NE, NJ, NM, OH, OK, RI, UT, VT, WV |
