IRS Releases 2020 Form W-4

The IRS has released the long-awaited 2020 Form W-4, the Employees Withholding Certificate. The form was previously titled Employees Withholding Allowances Certificate; the new name reflects that there are no longer allowances. As referenced in this article, the changes are intended to make the form less complicated and to comply with the new tax laws.

Remember that all new employees hired on or after January 1, 2020, must use the new form, and any current employees must use the new form if they want to make adjustments to their withholding.

For employers, know that you can continue to use the withholding based on employees’ most recently submitted W-4 form. The IRS will release a new Publication 15-T, Federal Income Tax Withholding Methods in mid-December, which will include instructions on how to determine federal withholding.

The American Payroll Association has drafted a sample letter explaining the 2020 Form W-4 to employees. If employees ask for specific advice, Employers Council recommends you direct them to their personal tax adviser.