On December 5, 2019, the IRS released the final version of the 2020 Form W-4.  The form has been retitled to Employee’s Withholding Certification and has undergone some major revisions.

The new form is on a single, full page, followed by instructions, worksheets and tables. Instead of withholding allowances, the new form includes a process for declaring additional income, so employees can adjust their withholding with varying levels of accuracy, privacy, and ease.

The new process will have employees entering their personal information, indicating if they have multiple jobs and/or a spouse, claiming dependents, making necessary adjustments, and then signing the form.

All employers must start using the form on January 1, 2020 for all new employees.  Here are two things to keep in mind about your current employees.

  1. Current staff are not required to complete a new form but can choose to do so.
  2. Any adjustments made on or after January 1, 2020 by current staff must be made on the new form.

To obtain the form and for other helpful information the IRS has set up a page for the new form, https://www.irs.gov/forms-pubs/about-form-w-4.

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