BE PREPARED FOR CHANGES TO FORM W-4
IRS releases revised Form W-4 in November for implementation on January 1, 2020
***iSolved and Efficient Forms has already built in the logic for the new W-4. The new form will be ready for onboarding on Jan, 1 2020.
The final version of the Form W-4 will be released by the IRS this month bringing with it big changes... So whats new?
- Allowances are eliminated completely, instead it walks employees through at most 5 steps to calculate withholding.
- Currently, when a valid Form W-4 is not on file, the employee is treated as "Single, no allowances". With the elimination of allowances, employees with no valid Form W-4 on file will be assigned the status of "Single w/no adjustments"
- IRS is providing a Step 2 mainly for those employees who have additional sources of income, or who wish to have additional tax withheld.
- All employees hired after 12/31/19 will have to use the new Form W-4
- Existing employees do not have to complete a new Form W-4, unless they wish to change their withholding.
To assist we have provided several links to learn more.