The Internal Revenue Service (IRS) recently debuted a new Form W-4 to the public. The new design aims to simplify the withholding system, replacing complicated worksheets with questions designed for the layman. The hope is that the form will help employees report more accurate amounts, allowing the IRS a better assessment of taxes paid.
One thing you might notice on the new Form is the absence of the word, allowance. The title of Form W-4 is now the Employee’s Withholding Certificate.
To help further your understanding of the redesign and its impact on employers, we have provided clarification around frequently asked questions regarding Form W-4 below.
As a reminder, the new forms go into effect in tax year 2020. Additional guidance is expected regarding payroll calculations needed based on the data fields on the new and old forms, as well as guidance surrounding employees that fail to submit a Form W-4 after 2019. If you have any questions about the new form, please give the professionals in our office a call today.
Receive Free financial tips & Tax Alerts!
Here are some of the key tax-related deadlines affecting businesses and other employers during the third quarter of 2022. Keep in mind that this list isn’t all-inclusive, so there may…
Creating a budget is a crucial task for any business. It helps owners, executives, and managers estimate revenues and expenses, set goals, and closely monitor costs throughout the year. Of…
Unless you specialize in tax law, you’re probably not an accounting expert, but understanding accounting basics can help lawyers ensure their legal practice complies with ethics rules and accounting regulations….