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.