On Dec. 5, 2019, the Internal Revenue Service released its final version of a modified 2020 Form W-4, the Employee’s Withholding Allowance Certificate. The new form is intended to make withholding more accurate and was implemented as part of the Tax Cuts and Jobs Act of 2017.
The change affected filers for the first time last tax season, taking effect January 1, 2018 and modifying the tax laws.
Following are some helpful links about the change.
- Check out or download the new 2020 Form W-4
- Use the Tax Withholding Estimator to obtain withholding information for the upcoming tax year
- The changes to the W-4 Form affect both employers and employees. Review and understand the FAQ on the 2020 Form W-4
IRS suggests reviewing employee withholding online
The IRS encourages employees to review their tax withholding situation to avoid having too little or too much taken out of paychecks. The IRS has an online tool to do this.
BCN Services continues to follow these and any related changes and will communicate any important updates that affect employees. Please contact our office or call 800-891-9911 with any questions.
The new W-4 was originally scheduled to be rolled out in 2019, but it was delayed after concerns from professional payroll and tax communities.
Editor’s note: This is an update to our blog published in May 2019.
By Ethel Whitesall, Payroll Supervisor