With the end of the year nearly upon us, it’s almost time for tax season. For 2020, the IRS has redesigned Form W-4, Employee’s Withholding Certificate, to be more in line with how taxable wages are calculated on the Individual Income Tax Return. We’re here to help walk you through those changes in an effort to help make your tax season go as smoothly as possible.
The 2020 W-4 form has several differences from the 2019 W-4 form that you should be aware of.
- Steps 2, 3, and 4 now have “ask questions” for the first time
- Employees are required to put dollar values for claiming dependents
- Employees are asked to provide adjustment amounts for other incomes or deductions
- There are now additional worksheets attached, including Deduction and Multiple Jobs Worksheets, as well as instructions on how to fill out everything
This new format may seem a bit daunting and confusing, but don’t worry. The IRS created an app to help employees fill out the 2020 W-4 forms. Employees will be asked a series of questions about their tax withholdings, their number of dependents, and their filing status. Their results will show whether they are expected to have a tax obligation or a refund at the end of the year. The app then gives step-by-step instructions on how employees should fill out their 2020 W-4 forms.
Interested in learning more about the tax changes or the IRS app? View our video here!
Looking to see what the new form will look like in your Workforce Ready solution? Check out this short video on Form W-4 – Employee’s Withholding Certificate for 2020.
Please note, this blog post and our videos have been based on the August 2019 draft copy.
- Download the finalized IRS form by heading over to About Form W-4, Employee's Withholding Certificate.
- Watch the IRS’s webinar on Understanding the 2020 Form W-4 and How To Use It To Calculate Withholdings.
- Review APA’s 2020 Form W-4 Hot Topics to help you with the changes. Topics include key resources such as a template letter to help you communicate to employees, a comparison tool, withholding scenarios, supporting IRS resources, and much more.
- Join the Kronos Community, and subscribe to the Workforce Ready (Announcements) group to stay in the know when the finalized W-4 form for 2020 is available in Workforce Ready.