Starting in 2020, employers will need to provide the redesigned Form W-4 to new employees and to current employees who want to change their withholdings. The goal of revising the 2020 W-4 was to address some shortcomings of the current W-4 while limiting the format and reduce disruption to existing systems.
The new W-4 should be more accurate by accounting for credits, other income, deductions and a graduated tax rate structure.
What this means to Employers:
- Employees should be strongly encouraged to provide a new W-4 in January 2020. Employers cannot require the new W-4.
- If no new W-4 is provided by employees, the employer will continue to use the existing information on file for the employee withholding status.
- New hires as of January 2020 MUST provide the new form 2020 W-4 (if employees do not need Steps 2-4 on form they can simply complete step 1 and sign step 5).
Changes to form
Section 1
- Employees can still select their marital status as they did before:
- Single, Married filing separately (single), married filing joint, or head of household. Number of allowances is no longer required.
- There will be separate withholding tables for each marital status.
- Allowances will not be automatically assigned based on marital status.
Single = 2, Married filing jointly or Head of Household = 3
Section 2
- A checkbox for multiple jobs or higher withholding** if not completed employee may owe tax at end of year.
Section 3
- Children and dependent calculations ** if not completed.
Section 4
- Other income
- Deductions
- Extra withholding election OR write Exempt
*** PLEASE NOTE: Employers are advised NOT to provide direct guidance to employees with regard to completing this form, the employee should be referred to their tax professional for guidance
Link to form
