New IRS W-4 Form in effect for 2020

The IRS has released a new W-4 form for 2020. The 2020 Form W-4, “Employee’s Withholding Certificate,” is different from previous versions. This is due to the federal law changes that took place in 2018. The IRS is not requiring all employees to complete a revised form; however, all new employees hired in 2020, as well as current employees who make changes to their tax withholdings, will be required to use the new form. 

Note:If a new form is not submitted, withholdings will continue based on previously submitted forms.

Even though the IRS does not require all employees to complete the revised forms, and even if an employee’s tax situation has not changed, it is recommended that employees perform a “paycheck checkup” to see if they need to make adjustments to their current withholdings. To conduct a checkup, use the IRS’s Tax Withholding Estimator (www.irs.gov/W4App). To use the estimator, it is helpful to have a copy of the most recent pay stub and tax return. 

The IRS has also published frequently asked questions that employees may find helpful if completing a new form. The information can be found at https://www.irs.gov/newsroom/faqs-on-the-draft-2020-form-w-4.