2020 Form W-4 Changes

The 2020 Form W-4, Employee’s Withholding Certificate, is very different from previous versions. This is due to the federal tax law changes that took place in 2018. One of the goals for the update is to replace complicated worksheets with more straightforward questions to employees and to enhance employee privacy.

All newly hired employees after January 1st, 2020 will be required to complete the new W-4 form. The Internal Revenue Service (IRS) is not requiring current employees to complete the revised form unless you make changes to your withholdings after January 1st. Please note: if you do not submit a new form, withholding will continue based on your previously submitted form.

Even though the IRS does not require all employees to complete the revised form, you may wish to perform a “paycheck checkup” to see if you need to make adjustments to your current withholding. To conduct the checkup, you can use the IRS’s Tax Withholding Estimator (www.irs.gov/W4App). To effectively use the estimator, it is helpful to have a copy of your most recent pay stub and tax return. It is likely that the estimator will be updated to account for the 2020 tax tables in early January.

The IRS has also published Frequently Asked Questions that you may find helpful as you complete the form (https://www.irs.gov/newsroom/faqs-on-the-draft-2020-form-w-4).

If you have any questions, please feel free to reach out to Payroll or HR.