IRS Updates Form W-4 for 2020

The Internal Revenue Service (IRS) has issued a new W-4 Form for 2020. The most notable changes that have taken place is the overall design of the form and employee allowances are no longer used.

The IRS states that the "...new design reduces the form's complexity and increases the transparency and accuracy of the withholding system. While it uses the same underlying information as the old design, it replaces complicated worksheets with more straightforward questions that make accurate withholding easier for employees."



The IRS has clarified that employees (hired in any year prior to 2020) are not required to complete the new W-4 form. Employers will continue to compute withholding based on the information from the employee's most recently furnished Form W-4. However, employees hired on or after January 1, 2020 are require to complete the new form.

Resources

The IRS has put together some Frequently Asked Questions (FAQs) concerning the new W-4.

Employers can print a copy of the new Form W-4 here.

Tips

When using the new W-4 Form, provide a complete copy including all pages. Current employees (those hired prior to 2020) may request to complete the new form, if they so desire. Make sure to retain the prior copy of the employee's W-4 for record-keeping purposes. It is suggested not to provide any legal or tax guidance to an employee when they are completing a W-4. Employers should refer the employee back to the Form or to their tax planner or accountant for assistance.