Payroll Lock Letters
In some rare cases, the IRS may require an employer to administer a W-4 Tax Lock Letter. This is a notification that the the employer receives from the IRS requiring the employer to change an employee's current elections to a specific withholding for a certain period of time.
More about Payroll Lock Letters
This can occur when an employee claims large numbers of deductions which the IRS determines to be excessive or an attempt by the employee to avoid taxation by minimizing their withholding amounts. Lock periods can vary in length from a few weeks or pay periods to a few months. Employees who have their W-4 locked will not be able to change their W-4 filing status without filing an IRS letter 2808C.
Please note Zenefits does not have a way to prevent an employee from updating their W-4 information. If you have an employee in this situation, be sure to closely monitor the W-4 information on their employee profile.
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