The IRS has released the final version of the 2020 Form W-4, which has been retitled as the Employee’s Withholding Certificate and reflects the changes to the tax code that were issued in the Tax Cuts and Jobs Act, which went into effect last year. In addition, the form is considered to be easier for employees to use. The IRS stated these as the key takeaways for employers:
All employees hired after January 1, 2020 must use the new form.
Current employees do not have to complete a new form but can make adjustments to their withholdings on the new form.
Any adjustment made to withholding after January 1, 2020 must be made on the new form. (NOTE: The IRS has a Tax Withholding Estimator to help employees complete the form).
If the employee chooses not to make any adjustments, the employer can still compute an employee’s withholding based on the previous form. (NOTE: Publication 15-T, Federal Income Tax Withholding Methods, will be released sometime in December to be used with the 2020 Form W-4, and will include steps that employers can take to determine withholding).
For more information, the IRS posted a list of FAQs, as well as other helpful information About Form W-4 on their website. In addition, cities may contact KLC’s Andrea Shindlebower Main, Personnel Services Manager or Courtney Risk Straw, Personnel Services Attorney regarding this or any other personnel matters.