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ALERT! W-4 Changes Coming in 2020

Sunday December 1st, 2019
Townships should be aware that the IRS is making changes to the W-4 form in 2020. This form, which allows employers to calculate federal withholdings from employees’ pay, will be called the Employee’s Withholding Certificate beginning in January. The new form will have a five-step process for entering a person’s information, which the IRS hopes will add accuracy and facilitate the process for employees.
 
The new W-4 will no longer have an exemption line. Instead, employees will have to itemize their deductions on a worksheet and then enter the results on the form.
 
Although townships do not file W-4s with the IRS, they should keep them on file for all current employees. Townships should consider offering employees yearly opportunities to review their with­holding allowances and change them if necessary.
 
The final version of the new W-4 is scheduled to be released by the end of the year.