Did You Know?
Many of you may already be aware that the IRS has completely redesigned the W4 for 2020. This is the form that employees complete to instruct employers on how to withhold Federal Income Tax from their paychecks. The new form, released on December 5, is quite different than the form we have all become used to.
A Word from the APA
According to the American Payroll Association:
“While the form is different, the IRS designed the withholding tables to work with a prior year form or the 2020 form. The IRS is not requiring all employees to complete a new form. However, the new form is required for all new hires in 2020 and for employees who have completed a Form W-4 before 2020 and want to make changes to their withholding in 2020. Also, while employers may not require employees to complete a new form, they may ask them to do so.”
Here’s the Form
Also helpful, the IRS has released the new list of Frequently asked Questions for the 2020 Form W-4.
There is an excellent article published by the Society for Human Resource Management (SHRM) that will be very informative as well: “IRS Overhauls Form W-4 for 2020 Employee Withholding.” The new form allows for more accurate withholding and greater privacy for employees.