SSN Policy Manual

Employment Issues

Therefore, it is prudent that a business develop proof that it has complied with its requirement to ask an employee for, and was unable to obtain, a social security number. The following form (or similar) should be given to the employee for his signature: Form p-1 Reasonable Cause Affidavit by Payor For Not Obtaining Payee's Identifying Number b Release Fmm Penalty-26 U.S.C. (i6724(a)

Inc . , 18 65 Tully Road,

iw'dhmw 57 /0631823

f%$'t%dfrn%iit"l"dh,

San Jose, Calif., 95134

of Zip Construction, Inc .

, being an

I John McGuire hereby state that Tom Brokaw

I have asked for the identifying number of the employeelpayee,

who has dedined to providean identifying number. I am filing this affidavit in a m d a n c e with 26 USC6724, waiver of penalty (26 USC 6724(a)) assessed under the code uDon a showina of reasonablecause. and Treasurv ~eaulation 301 5109-lit). - ------ --- - I certify that the informanon stated here is correct and that I asked the employeelpayeefor a taxpayer ID number (Social security number)and that the employeelpayee declinedto provlde such number. EmployerIPayor signature John McGuire ate, 9/21/99 EmployeelPayee information

m &eu

(W .nd m.d ~ l w d r de )

EnplwaQspa Ugmanl:

3672 Herman Road

I Tom Brokaw

have

declined to provide an identifying number to my employerlpayor, Zip Construction, Inc..

c i t v~ t - . %*a ndZ l Pds

Santa Cruz, Calif. I certify that the information stated here is mrrect and the employerlpayor did ask me for a taxpayer ID number (social security number)and that I declined to provide such number. Employeelpayee signature 7~ &a&# Tom Brokaw Date b 9/21/59 26 USC $6724. waiver of penaily (26 USC §6724(a)) assessed urder U-e code upon a shmmg of reasonabk cause. and Treasuy RqluBlm301.61~l(c)Tre~uryR~gutat&1301.6lWl(c)provides: .... M e n lhe penm filing h e returnstalemen1oromer dowment dces rot kncwd h e SSN of h e oher tenon and has mmdi i wim h e reuuesl ororisionof his caraaraph, he shall sign an amdavit on b-e UammWI document kmardng such retms. sbtemenh a other aacumnb 8, (W Internal~ e k n u eS e ~ o seo-smng A payor s mured b reguest& denmyng nu- of me payee If sller such request has been made, b-e payee does not (umsh h e paw mm an ldentifvina number, the ~enalty 650.00) win not be assessed aaaiml the mwr, Hit is s h n h a t smh failure is due *1 reasamble

An employer should attach a copy of this completed form to your business tax return.

Complying with Internal Revenue Service Form W-4 Most employment policies require that each employee complete an Internal Revenue Service Form W-4 before the employee can begin work. They incorrectly believe that 26 USC $3402 requires every employee to complete a Form W-4. Specifically, they refer to the notice on the lower-back of the Form, 26 USC §3402(f)(2)(A): 26 USC s3402. Income tax collected at source (a) Requirement of withholding (1) In general

Except as otherwise provided in this section, every employer making payment of wages shall deduct and withhold upon such wages a tax determined in accordance with ...