All new 2020 W-4
All employees hired beginning January 1, 2020, will need to complete the Form W-4 as part of their onboarding paperwork.
Here are the common questions employers and or employees are asking about the updates IRS has made.
Do my current employees need to fill out a new W-4?
Your existing employees can use the new form if they want to update withholdings for any reason (or after a life change like getting married or having a baby). Other than that, your current employees will not be required to complete a new W-4 — and you will continue to calculate payroll tax withholding based on the information from their most recent W-4.
Why did the IRS redesign the W-4?
The new W-4 is designed to accomplish two things: first, make the form easier for workers to complete. And second, to line up better with the elimination of withholding allowances after the passage of the 2017 Tax Cuts and Jobs Act (TCJA), which prevents employees from claiming personal exemptions or dependency exemptions.
Is the new W-4 actually as complicated as it looks?
The new form appears complicated mostly because of the instructions and charts that accompany it, but it’s more straightforward than the previous version of the W-4 when you dig into it.