The federal tax code overhaul that took effect Jan. 1, 2018, suspended the use of personal exemptions in calculating income tax liability until 2026. To conform to the law, the IRS revised the income tax withholding form and methods.
Starting Jan. 1, 2020, employers must use the 2020 Form W-4, Employee’s Withholding Certificate for new employees and those wishing to change withholding information. The new form requires employees to report dollar amounts instead of withholding allowances to calculate income tax.
This strategic white paper covers the multiple steps to be completed for Form W-4, how to fill out the income withholding worksheets in Publication 15-T, “Federal Income Tax Withholding Methods,” withholding for nonresident alien employees, and issues related to states.
Download your complimentary copy today!