The IRS released an updated version of its Form
W-4, also known as the “Employee’s Withholding Certificate.”
Employers use IRS Form W-4 to determine each employee’s federal
tax withholdings. The new form is intended to harmonize tax
withholding declarations with the Tax Cuts and Jobs Act, which
affected individuals for the first time during the last tax
Employees may complete a new W-4 each year or each time they
experience a change in their personal financial situation.
However, the new form does not invalidate prior versions, and
employers are not expected to replace W-4 forms from previous
years with the 2020 version.
of the New Form
- The new form will prompt
employees to declare whether they have multiple sources of
income (e.g., two jobs or two-earner households).
- New employees who fail to
submit a Form W-4 after 2019 will be treated as single
filers with no other adjustments.
- The new form uses a
five-step process. Only steps one and five are mandatory.
Employers should become familiar with the updates to IRS Form W-4
and make it available for all new hires and employees who wish to
amend their withholding declarations in 2020. Please note that
employers are not required to update W-4 forms that were
completed and filed on or before 2019.