Article Posted on 02/17/2020
There is a new W-4 for 2020 for payroll withholding. The goal of the redesigned form was to make it more clear to employees and accurate. The new W-4 looks very different. The TCJA bill eliminated the personal exemption system, which the old W-4 was based on. Many taxpayers had a surprise tax bill April 15th; a new W-4 is needed to correct that.
The new W-4 asks for more information than before, to achieve a more accurate result. Some employees may not want to disclose the extra information to employers. But you don't have to fill out all the sections, the more you complete, the more accurate it will be.
There is a new online tool employees can use to fill out this new W-4. Find it here: https://www.irs.gov/w4app
Here is what you need to know as a business owner:
- You are not required to get a new W-4 from existing employees
- Existing employees may complete a new W-4, but you cannot force them too.
- You must use the new W-4 in 2020 for all new hires