If an employee quits before completing a W-4 tax withholding form, can we just pay him as an independent contractor or withhold his final paycheck until he completes his W-4?

An independent contractor relationship is not created simply because an employee works for a short duration and then quits. Your employee cannot be paid as an independent contractor in this situation, and you must prepare his final paycheck within the legally required timeframe even without a completed Form W-4 specifying tax withholding status and allowances.

Even though your employee did not complete the Form W-4, California’s final paycheck deadline laws still will apply. Delaying the final paycheck until the employee completes the Form W-4 may result in a violation of California’s Labor Code Section 202.