Ringing in a New W-4 Form for 2020!
Titled “Employee’s Withholding Certificate,” the New Version of the W-4 Form was Released on Dec. 5 by the IRS
The changes are designed to make accurate income-tax withholding easier for employees starting next year.
Download the new 2020 W-4 Form
So, why all the change the changes to the W-4? The IRS updated the W-4 form to reflect tax code changes ushered in by the Tax Cuts and Jobs Act, which took effect last year.
How has the W-4 Changed?
The 2020 Form W-4 is a single, full page layout, followed by instructions, worksheets, and tables. In place of withholding allowances, the new W-4 includes a process with five possible steps for declaring additional income, so employees can adjust their withholding with varying levels of accuracy, privacy and ease of use.
Easier for Employees
In the past, the worksheet was more complicated. With the new form, employees will enter their full-year expected deductions over the standard deduction amount. This should clear up concerns and hesitations in filling out the form.
Addressing Privacy Concerns
On the new W-4, taxpayers will be able to discreetly specify that they want to have more tax withheld without having to share these details with their employer.
The American Payroll Association (APA) shares changes to Form W-4, in a sample letter. In the letter there is basic information about the new steps employees will take to complete the W-4 form. “Employers can freely customize and share this letter with employees,” according to the APA .
If you have questions about the new W-4 or other questions about human resources for your small to mid-sized business, contact Chris Cooley at MyHRConcierge by phone at (855) 538-6947 or by email at firstname.lastname@example.org.