In December 2019, the
New and Improved IRS Form W-4 2020 Update
For the first time in many years, the IRS has made notable changes to the 2020 W-4 form. The changes were derived in an effort to simplify the withholding system for employees and increase the transparency and accuracy of the worksheet. The questions on the new Form W-4 are more straightforward and you’ll see that the allowances were removed entirely in order to keep up with changes in the law.
Although the new form was recently released, existing employees are not required to furnish a new Form W-4. However, if an employee wishes to make changes to their withholdings, they will need to use the redesigned form. There are several reasons that an employee may wish to increase or decrease their withholdings.
The IRS offers a
Employers can start using the new W-4 form for wages to be paid in 2020. For existing employees, employers are instructed to simply continue withholding based on the information provided on the completed Forms W-4 on file. However, new hires will need to use the new Form W-4. Employers can ask current employees to fill out new Forms W-4, though employers are instructed to explain that they are not required to do so and that withholding will continue based on the information on the previously furnished form.
Tax Tables Will No Longer Be In Circular E
Another important change for employers to note is that the IRS will no longer issue Notice 1036,
With Integrity Data’s solutions, including
Get Prepared for the 2020 Tax Season
The IRS has made some notable changes and tax season is here. Take the time now to position your business for success as you hire new employees, help existing employees with withholding changes and streamline your payroll processing systems. The experts at
Written by Integrity Data