In the first major redesign over 30 years, the IRS is kicking off the decade by rolling out a new Form W-4. The updated document reflects changes that were made to the federal tax code following the Tax Cuts and Jobs Act last year. To help employers and employees adjust to the new Form W-4, the IRS answered a number of frequently asked questions on their website.
Here are the key takeaways you need to know to ensure compliance with the new Form W-4 in 2020:
Resources to Ensure Compliance with the New Form W-4
If you have specific or complicated questions that weren’t covered here, the IRS has a frequently asked questions where they provide further insight. In addition to that information, they offer an online Tax Withholding Estimator so employees can accurately determine what is likely to be withheld when they complete the new Form W-4. On the flipside, for employers who are struggling to explain the new form to their workers, the American Payroll Association published a sample letter that can be used to thoroughly explain the new document and its requirements.
Whether you’re an employer or employee, the thought of a new Form W-4 is more daunting than actually integrating it into operations or completing it is. Armed with this basic information, as well as the numerous helpful resources above, you will be able to navigate the new form with ease.