Ask CPA Sam

Q. Is it illegal to claim exempt status on my W-4 for a couple of paychecks? A. To get the answer to your question, we need to examine the statements on the W-4 relating to the exempt status.  Exempt means you will have no federal withholding on your paycheck.  It does not affect Social Security [...]

Q. My employer did not withhold any federal or state tax last year, just Social Security and Medicare. What do I do? A. This is really a serious problem. However, the number of ways you could get into this problem are many. First lets tackle the federal issue. Check with your employer to see what [...]