Enter in the first box of the withholding identification number your 9-digit federal employer identification number (EIN); in the second box, your 2-digit. Overpayments are considered paid when received and must be included in the employee's income when received.This policy sets forth the procedures for wage deductions to recover overpayments made due to mathematical or other clerical error. To claim exempt status, you must meet certain conditions and submit a new Form W-4 and a notarized, unaltered Withholding Certificate Affirmation each year.