Jan 2020 - IRS Released NEW Form W-4

The Tax Cuts and Jobs Act of 2017 forced a revision of the federal withholding process, culminating in a brand-new Form W-4 for use in 2020. Key changes include the elimination of withholding allowances and the ability for taxpayers to have more tax withheld to address the concerns of those who have had to unexpectedly pay tax when filing in the years following the tax reform legislation.

All new employees hired as of January 1, 2020 must complete the new form. Existing employees are not required to complete a new form but can choose to adjust their withholding based on the new form. Any adjustments made after January 1, 2020 must be made using the new form.

Employers, therefore, must be prepared to compute employees' withholdings based on both the old and new versions of the Form W-4. With the release of the new federal form and revised withholding tables, individual states, including New York, must also determine if they will update their systems based on the federal changes, keep their current process, or develop a new withholding process.

Check out the new federal withholding form and instructions here: https://www.irs.gov/pub/irs-pdf/fw4.pdf

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