New federal W-4 tax form for 2020
Effective Jan, 1, 2020, the Internal Revenue Service (IRS) redesigned the Federal W-4 Tax Form which instructs employers how much tax to withhold. The redesign is a result of the changes to the federal tax code from the Tax Cuts and Jobs Act, which took effect in 2018. The new federal W-4 tax form is meant to be a more accurate paycheck withholding for employees. The new form uses dollar amounts to represent credits allowed for qualified dependents instead of allowances/exemptions. Click here for the new federal W-4 tax form.
As of Jan. 1, 2020, this form is required to be completed by new hires, as well as existing employees that want to change their federal withholding. Current employees do not need to complete a new federal W-4 tax form unless they would like to change their withholding. Federal tax withholding will continue based on the employee’s previously submitted federal W-4 tax form unless the employee completes a new form.
If you do need to complete a new federal W-4 tax form, please read the instructions that are included with the form. You must complete Steps 1 and 5. Steps 2, 3, and 4 are optional, but completing them will help ensure that your federal income tax withholding will more accurately match your tax liability. Step 1 is for personal information; Step 2 is for households with multiple jobs; Step 3 is used to claim tax credits for dependents; Step 4 is for other adjustments; and Step 5 is the signature section.
Even though the IRS does not require all employees to complete the new form and even if your tax situation has not changed, the IRS recommends you perform a “paycheck checkup” to see if you need to make adjustments to your current federal withholding.
Click here to conduct the checkup, using the IRS Tax Withholding Estimator.
Click here for Frequently Asked Questions published by the IRS that may be helpful when completing the form.
There has been no change to the state tax form.
If you have any questions regarding the new federal W-4 tax form, please contact Tracy Rickett, Human Resources Generalist, at 315-898-2017 or TracyRickett@unyumc.org.