42.17.135    FALSE STATEMENTS BY EMPLOYEES - RECOMPUTATION AND ESTIMATION OF WITHHOLDING

(1) Where the department determines that an employee has provided a false statement through a Form MW-4, it may require the employer to deduct and withhold from the employee's current wages a recomputed amount of withholding for the current year wages of the employee based on the proper amount of withholding which would have been taken had the false filing not been made. If the employee has terminated employment and has been paid all wages earned prior to notification of required recomputation, the employer shall not be held liable for the uncollected withholding.

(2) If an employer has knowledge that a falsified Form MW-4 has been provided by the employee and fails to notify the department as required, the employer may be held liable for withholding not collected.

(3) The department may estimate the amount of non-exempt wages and withholding owed by the employer if it determines that the method used to account for non-exempt wages reported on Form W-2 or MW-3 does not accurately reflect the proportion of non-exempt wages earned by an employee. When no records have been kept, or no records are provided, the department may subject all wages to withholding, as required by 15-30-2502, MCA.

 

History: 15-30-2620, MCA; IMP, 15-30-2502, 15-30-2509, MCA; NEW, 1982 MAR p. 296, Eff. 2/12/82; AMD, 2010 MAR p. 177, Eff. 1/15/10; AMD, 2019 MAR p. 2384, Eff. 12/28/19.