The IRS Has Finally Released the New W-4 Form

W-4 Tax FormHere is what you need to know:

  • All new employees hired as of January 1, 2020 must be given the new version of the W-4 form. You can access the new form here.
  • Current employees do not have to complete the new W-4 form, but they have the option to do so in order to adjust their federal withholding according to the new form’s worksheet.
  • Employers who do not require all employees to complete the new W-4 form should confirm that their payroll provider can handle both the old and new withholding calculations.
  • If current employees wish to adjust their federal withholding at any point after January 1, 2020, they must be given the new W-4 form.

The goal of the new W-4 form, according to the IRS, is to simplify the process for determining the appropriate amount of federal withholding, and increase the accuracy of the withholding calculation to avoid under or over-withholding. The complicated worksheets from the prior W-4 form have been replaced with a 5-step process that leads the user through the calculations, similar to how the IRS 1040 tax return form works.

If your company chooses to provide existing employees with the opportunity to complete the new W-4 form, the American Payroll Association has prepared this sample letter that can be customized and distributed to your employees in order to explain how the new form differs from the prior version and why they may want to use it.

If you have questions about the new W-4 form, or any other human resources matter, please call our office at 631-794-7400 to speak with one of our HR Business Partners, or EMAIL US.