Simple or not, W-4s can prove painful.

• Position: Payroll

One of the simplest tasks a new employee undertakes -- filling out his or her W-4 form -- can cause sticky problems for both employee and employer if not done correctly. Experts say companies need to pay close attention, especially when workers claim a plateful of exemptions.

Problems can start right with the basics -- the employee's correct full name and Social Security number, said Scott Mezistrano, manager of government relations, American Payroll Association, speaking on a recent Tax Talk Today® Internet broadcast. "It's important that both are correct, to save time for everyone, to avoid penalty and to ensure that the employee gets his or her retirement benefits."

Panelists on the program confirmed that it is not a violation of privacy laws for the employer to ask to see and even photocopy the employee's Social Security card, to make sure everything is accurate.

Payroll managers should allow employees to change withholding at any time. On the other hand, payroll managers are not required to accept W-4s they know to be invalid, because of statements made by the employee, illegal alterations or the use of the W-4T. if employers think a form is...