February 04, 2020
New Federal W-4 Form
New Changes
As you might have heard recently, the IRS has overhauled the Federal W-4 Form this year. With all of the recent changes to our tax laws, a new form was needed to account for them properly.
Therefore, we found some helpful information from the American Payroll Association on the matter:
“The 2020 Form W-4 is very different from previous versions. This is due to the federal tax law changes that took place in 2018. The IRS is not requiring all employees to complete the revised form and has designed the withholding tables so that they will work with both the new and prior year forms. However, certain employees will be required to use the new form: those hired in 2020 and anyone who makes withholding changes during 2020.
“Even though the IRS does not require all employees to complete the revised form and even if your tax situation has not changed, we recommend you perform a “paycheck checkup” to see if you need to make adjustments to your current withholding. To conduct the checkup, you can use the IRS’s Tax Withholding Estimator (www.irs.gov/W4App). To effectively use the estimator, it is helpful to have a copy of your most recent pay stub and tax return.”
For Our Clients
We at Miller Management have updated our Resources page with the latest forms for your convenience. As previously mentioned, you should be using this new form for anyone hired going forward, and anyone making a change this year as well.
Encourage your employees to complete a new form. This is the only way they can be sure they have their tax withholdings correct for their personal situation. The IRS has two very helpful resources on their website to help with this process. First, they have an FAQ page. Then, they have a Tax Withholding Estimator tool that can help you decide the best way to fill out the form.
While you are updating forms, be sure to check and see if your State W-4 has changed as well. Missouri has an updated form here, and many other states made changes in 2020 as well.
As always, be sure to reach out to your team at Miller Management if you have any questions. As your Good Faith Accounting partners, we are here to help you succeed!
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