What does exempt mean on w-4?

On the W-4 form, "exempt" means that an employee is not subject to federal income tax withholding from their paychecks. To qualify for exempt status, an individual must meet specific criteria, such as having no tax liability in the previous year and expecting none in the current year. Employees claiming exempt must write "exempt" on their W-4 and should be cautious, as failing to meet the requirements could lead to tax penalties.