To record a rejection of an employee's requested allowances:If the employee claims more than 10 allowances, you must send a copy of the W-4 to the IRS and to the appropriate state tax authorities. The IRS and state authorities may independently issue notices rejecting the claim and reducing the number of allowances.
Attention: Ensure that you have set the correct effective date before entering any tax information.
To record a rejection of an employee's requested allowances:Enter the notice date in the Allowances Reject Date fields in the Federal Tax Rules or appropriate State Tax Rules region.
Reduce the employee's allowances as of this date.
You can enter information for local tax withholding in any locality within the states for which you entered state tax rules.