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W-4 forms

Gene $immons

LawnSite Bronze Member
Probably a question for my accountant, but I thought I'd post it here first.

Suppose you have an employee who is claiming 3 children on his w-4, but you think he is telling a lie, and has less dependants, or none at all.

Question, does this cost me more in any way shape or form? I realize that the employee is trying to save $ on his witholdings, but I am not required to prove how many children he has.

Just wondering if this "lie" hurts me in any way financially.


Kelly's Landscaping

LawnSite Platinum Member
Milford CT
You only match his social security the 7.5% you pay and the unemployment and those sorts of government thefts but income taxes are paid solely by the employee and will have no effect on you what so ever. As for number of dependents he claims he may not have 3 dependants but the law says he can claim what ever he wishes as long as he is paying what he expects to have too when he does his return. Long ago when I was foolish and invested in the stock market I use make around 34,000 a year as a landscaper working for someone I also made 8-12 k a year off the market I did not with hold extra taxes. So logic would say I would have to pay right? Wrong we work seasonal and thus my 34,000 a year wasn’t 653 a week it was 900 a week with my winters off. So what would happen is I would be taxed at the much higher rate because they figured I was making 50,000 a year based off my weekly income.

What that means is he could claim 3 dependants then at the end of the year just claim himself but because he didn’t work a full year he could very well have met his tax obligations. I hope that helps.


LawnSite Member
The above replay is right on the money. What a person claims for personal exemptions has no added costs to you. As long as you have a W4 on file and compute your employee's taxes on that withholding table you have no further obligation.


LawnSite Member
Missy, you're right on. I think it may help the employer to have employees claiming more deductions, no?


LawnSite Senior Member
but if the employee claims something like 10 or more, you have to report it.