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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