QLB Accounting Services continues to strive to keep clients informed of the new tax laws and changes. One such change is the redesigned 2020 Form W-4 for calculating employee’s withholdings. Here are a few things you should know about the new form:
- The 2020 Form W-4 was redesigned by the IRS to help simplify calculating employee’s withholding.
- Individuals hired after 2019 or making changes to their deductions are required to complete the new Form W-4.
- In 2019, the IRS eliminated filing personal and dependency exemptions. Therefore, the redesigned 2020 Form W-4 no longer uses allowances.
- The form is divided into five steps, and employees must complete Steps 1 and 5. Steps 2-4 only apply if there are multiple jobs, spouse’s earning, claiming dependents, or other adjustments.
To download the IRS new 2020 Form W-4 with complete instructions and frequently asked questions, click HERE or visit www.IRS.gov.