There's a new W-4 form effective January 1, 2020, which significantly differs from previous versions. The W-4 is a required document that every new employee needs to complete so employers can properly withhold the correct amount of tax to submit to the IRS.
In previous years, employees would select the number of dependents, which would dictate the tax rate. The 2020 W-4 form no longer allows employees to claim a number of dependents, but instead a dollar amount. Additionally, it includes other income such as income made by working multiple jobs. The purpose is to determine your tax rate based on income.
The new W-4 form is applicable to new employees or employees making changes to their withholding elections any time beginning January 1, 2020 or later. Employees with no changes to elections hired prior to January 1, 2020 do not need to take any action. Employee election changes may be needed based on life events such as marriage or the birth of a new child.
Below is a link to the new W-4 form. Please reach out to Excelerator® if you have any questions on the new W-4 form or general HR questionsClick Here To Download The New W-4 Form
When you subscribe to the blog, we will send you an e-mail when there are new updates on the site so you wouldn't miss them.