Client Alert 
December 29, 2020

Time to Update Your New Hire Paperwork with
New Tax Withholding Forms and Health Insurance Notices
The federal and New York State government have recently issued updated tax withholding forms for employees. The 2021 IRS Form W-4 Employee’s Withholding Certificate is available here. The 2021 NYS Form IT-2104 Employee Withholding Allowance Certificate, available here.

While the Form IT-2104 is similar to the Form W-4, employers should have employees complete both forms to ensure proper withholding of federal, state and, where applicable, local taxes for each employee.

In addition, the U.S. Department of Labor has issued new “New Health Insurance Marketplace Coverage Options and Your Health Coverage” notices. These notices should be used to comply with the Affordable Care Act requirement that employers provide each new employee with a written notice informing the employee of the health insurance marketplace’s existence, and, if applicable, information about the employer’s health plan at the time of hire. 

Employers that offer health coverage to some or all of its employees should use the notice found here. Employers that do not offer health coverage to any employees should use the notice found here.

Employers should update their new hire packets and use these newly-revised forms and notices with new hires starting January 1, 2021. Additionally, current employees who have changes in withholdings should complete the updated Form W-4 and Form IT-2104, as applicable.

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If you have questions or would like additional information, please contact our Employment Law Practice Group Leader Amanda M. Fugazy (afugazy@egsllp.com) or the primary EGS attorney with whom you work.

This memorandum is published solely for the informational interest of friends and clients of Ellenoff Grossman & Schole LLP and should in no way be relied upon or construed as legal advice.