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

https://www.irs.gov/pub/irs-pdf/fw4.pdf

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