The Internal Revenue Service has released a revised W-4 Form for 2020. The agency says the new form is intended to simplify withholding, and help employees make more accurate withholding decisions, It’s all the result of tax changes made by the Tax Cuts and Jobs Act of 2017.
Employers must use the new Form for employees who are hired in 2020. Employees who were paid prior to January 1, 2020, don’t need to submit a new Form unless they want to adjust their withholding. Because of the changes made by the TCJA, the revised form no longer uses withholding allowances, those allowances that were tied to the personal exemption amounts, which were eliminated by the TCJA. The 2020 Form also replaces complicated worksheets with more straightforward questions intended to promote more accurate withholding.
Employers should incorporate the revised W-4 in their payroll practices for 2020 and should also make sure their payroll vendors have done so as well. If you have questions about the new W-4 or any other tax questions call the law office of Mary King P-L 941 906 75850 , or visit Floridataxlawyers.com