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The Federal W-4 Tax Withholding Form is Being Updated for 2020

The Internal Revenue Service (IRS) has released a redesigned Form W-4 for 2020. The form has been updated in order to comply with updated tax reform laws that suspends personal exemptions through 2025. Questions have been added to the form and worksheets have been removed to reduce the form’s complexity and allow for a more transparent withholding process.

Next Steps

Starting January 1, 2020, all employers must provide new employees hired on or after this date the redesigned version of the W-4. Employers are not required to provide the new version of the form to employees hired before January 1, 2020. However, such employees may complete the new form at their discretion if they want to make changes to their withholding or continue or change an election of exempt status.

Employers who have an electronic W-4 completion process through a Human Resource Management system should work with their providers to ensure this form is updated in the system upon release.

The IRS has also released frequently asked questions for employees and employers as it pertains to the updated form which may be found here.

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