The IRS has released the final version of the 2020 Form W-4, Employee’s Withholding Certificate. The updates reflect federal tax law changes to allow more accurate calculation of the employee’s federal income tax withholding.
The new 2020 Form W-4 is very different from the previous version. The new 2020 Form W-4 no longer provides withholding allowances; instead employees will calculate withholding based on tax dependents and other income/deductions.
Who needs to complete the new 2020 Form W-4?
Current employees are not required to complete a new form merely because of the redesign. Withholding will continue based on the information from the most recently submitted Form W-4 (2019 or earlier).
Current employees can choose to adjust the withholding from their paychecks by submitting a new 2020 Form W-4.
All new employees hired on or after Jan. 1, 2020 must use the new form.
Even though the IRS does not require all current employees to complete the revised form and even if your tax situation has not changed, the Auditor & Controller recommends you perform a “paycheck checkup” to see if you need to make adjustments to your current withholding. To conduct the checkup, you can use the IRS’s Tax Withholding Estimator.
Unfortunately, the IRS has not yet finalized the withholding estimator for 2020. This tool should be released soon. When it is, we will update you on Insite. To use the estimator, have a copy of your most recent pay stub and tax return.
If you would like to make changes to your withholding, see instructions.
Please note, the Peoplesoft Employee Self-Service Web Portal W-4 Tax Information page will be temporarily unavailable beginning Dec. 20, 2019 while we update the system with the new tax form.
You may want to seek advice from your tax preparer or tax advisor about the impacts of the 2020 Form W-4 on your withholding requirements.
For additional information on the new form, visit IRS.gov.