If you have employees in your business you may know the Internal Revenue Service has revised Form W-4 and is offering answers and guidance online.
- If you do your own payroll inhouse the Income Tax Withholding Assistant for Employers can help guide you around the new changes. The redesigned withholding system (no longer based on withholding allowances) went into effect on Jan. 1.
- There is even a webinar, Understanding the 2020 Form W-4 and How to Use it to Calculate Withholding posted on the site.
- And a new and improved Tax Withholding Estimator that incorporates the changes from the redesigned Form W-4, Employee’s Withholding Certificate, that you can direct your employees to for guidance on how to fill out the new form.
While the IRS does not require a new W-4 Form for all current employees, (employers can continue to use the latest W-4 on file for their workers) it may help employees to understand their withholdings better.