2020 W4 and Changes

December 23, 2019
Posted in Newsroom
December 23, 2019 Associated HCM

2020 W4 and Changes

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


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