You are a payroll professional, and one of your employees has just come into the payroll department and asks you the following question:
“I am thinking of amending my Form W-4 so that I receive more money in my paycheck. I am thinking of changing my status and claiming more dependents. What do you think of my idea?”
1. How would you reply to this employee?
2. If the employee does make the changes without consulting the payroll professional, what is the income tax implication for this employee?
Note: Avoid giving generic and short answers. Analyze the situation and provide concrete and useful information an employee would understand.
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