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What Has Changed in the Form W-4 for 2020?

The Form W-4 2020 is an IRS form. All the employees need to fill this form and mention the amount of allowance they want to take and the amount they want to withhold for the federal taxes. Such form they need to submit to the employer and accordingly he shall pay the taxes liable. The form was earlier implemented for the year 2019 but due to certain changes, it shall now be implemented from the year 2020. The form shall make both the parties employee and the employer liable for some or the other work. They shall have to abide by the mentioned laws and rules. There are many changes in the form in relation with the earlier 2018 form. Some of the changes are mentioned below.

 

Some Major Changes in the W-4 2019 Form

 

IRS has explained that the new W-4 form shall be more accurate and shall result in transparent withholding. The new draft of the 2020 form has removed the withholding allowance and tried to simplify the previous worksheet. Now the employees can fill the same form for having multiple jobs. Not all the employees shall be needed to fill the form but integrating the new form in the payroll system shall be a tedious task for all the employers. Some of the major differences in the new form are:

 

  • As a result of TCJA, the new form eliminates all the allowances that were earlier required for computing tax withholding. 
  • Now there is a new section on the first page of the form that requires the employees to account for their multiple jobs and also spouse works. Earlier this section was buried somewhere in the worksheets.
  • In the first section, there is a checkbox for the head of household filing status. 
  • The new form has a simple five-step structure with only two worksheets. Earlier this portion of the work was complex and was done in lengthy worksheets. 
  • The new column requires the employees to fill the number of children he or she has below the age of 17 and also the number of dependents in the family. These details help the employees to take some more amount of allowance.
  • In the new form, the process of claiming the exemption has also changed a little. Earlier under step 4(d), the filers had to mention the exemption but now they shall mention it in step 4 (c).
  • The old employees are not required to fill the new W-4 form although their employer can ask them to fill the new one. But if an employee does not fill the new form this shall not be treated as a failure to submit the form and shall be valid for W-4 submissions.
  • Everyone hired after the new form shall be required to fill the new form. 

 

Conclusion

The new form shall be implemented from the year 2020. The revised form will not have much of the changes and therefore employers can start incorporating the new form in their payroll system.

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