Previous Story
‘Update withholding tax certificate info’
|
Posted on May 16 2006
Government employees were urged to update information on their withholding exemption certificate to avoid potential penalties.
Finance Secretary Eloy S. Inos said the Division of Revenue and Taxation would soon begin their review of the Form W-4 of the employees’ payroll record within the CNMI government, including autonomous agencies.
“The review may ultimately result in the imposition of penalty on the employee when will be found to have provided false or fraudulent information on their Form W-4 or who failed to update their information based on required changes to their withholding allowance claim,” Inos said in a memorandum.
The fine is up to $1,000, in addition to any other civil or criminal penalties that may be imposed on the employee.
According to the Department of Finance, employees are required to amend their Form W-4 when a change in status occur that would result in the reduction of the number of withholding allowance claimed.
Instances when the withholding allowance claimed must be reduced include death of a spouse; divorce or legal separation from spouse; when both husband and wife are claiming allowance on separate certificates; when a dependent is expected to receive income in excess of the annual limit; when a dependent can no longer be claimed because of age limit; when the support of a dependent is taken over by another person; or when there are other income sources not subject to tax withholding such as interests, dividends, capital gains, and self-employment income.
