Your guide to the 2020 Form W-4

The 2020 Form W-4 is designed to be simpler and more accurate, permitting easy adjustments for anticipated tax credits, other income and deductions. Prior versions required employees to perform a 9- or 10-step worksheet to calculate an additional amount to withhold or establish further allowances. With the new version, employees simply enter a full-year estimate in dollars. Payroll service providers will apply those amounts automatically to per-payroll wage and tax withholding calculations.

2020 Form W-4 Highlights

  • There are three options for employees with multiple jobs or two-earner families:
    • Simplified worksheet in the W-4 instructions
    • Enhanced IRS online withholding estimator
    • New checkbox to automatically adjust for multiple jobs or two-earner families
  • New filing status – Head of Household
  • New adjustment entries:
    • Full-year child and dependent tax credits
    • Full-year other income
    • Full-year deductions

For more information on how fundamental changes to income tax withholding will significantly affect both you and your employees, download our IRS 2020 Form W-4 Employer Guide.

TAGS: Tax Regulatory Compliance Compliance