What action should an employer take if they discover false information provided on a W-4?

When an employer discovers false information provided on a W-4 form, it is crucial to reject the form. The W-4 is used to determine the correct amount of federal income tax withholding from an employee's paycheck. If the information on the form is inaccurate, it could lead to improper tax withholding, which can have significant consequences for both the employee and the employer.

By rejecting the form, the employer ensures that they maintain compliance with tax laws and regulations. This action allows them to request accurate information from the employee, ensuring that the withholding amounts are appropriate and that the employee does not face issues related to underpayment or overpayment of taxes. Taking this proactive step helps protect the integrity of the payroll process and safeguards the company against potential penalties for incorrect tax reporting.

Therefore, rejecting the false W-4 form is not just a matter of administrative procedure; it's an essential practice for responsible payroll management.