NEW Form W-4 for 2020
On 12/5/19, the Internal Revenue Service (IRS) issued a new form W-4 for 2020. The form was retitled Employee’s Withholding Certificate and has been designed to make accurate income tax withholding easier for employees. Some of the key points that employers should note are as follows:
- All new employees hired as of 1/1/20, must complete the new form.
- Current employees are not required to complete a new form, but may elect to choose to do so to adjust their withholding based on the new form.
- Any adjustments made after 1/1/20, must be made with the employee completing the new form.
- Employers may still compute withholding based on information from the employees’ most recently submitted Form W-4, if employees choose to not adjust their withholding using the revised form.
- A new publication 15-T, Federal Income Tax Withholding Methods (https://www.irs.gov.forms-pubs/about-publication-15-t) is available for use with the new 2020 Form W-4 and includes steps that employers may take to determine federal withholding.
The IRS updated the form to reflect tax code changes ushered in by the Tax Cuts and Jobs Act, which took effect in 2018 and to provide simplicity, accuracy and privacy for employees while minimizing the burden for employers and payroll processors.
For additional information on the new Form W-4, please contact us at www.newfocushr.com.
Written by: Kristen Deutsch, M.B.A., CCP
Posted in: IRS and Tax formsLeave a Comment (0) ↓