Important Notice: New W4 Form in 2020

On December 5, 2019, The Internal Revenue Service (IRS) released the long-awaited final version of the 2020 Form W-4, retitled Employee's Withholding Certificate, with major revisions designed to make accurate income-tax withholding easier for employees starting next year.  The IRS developed an FAQ to help employees understand the changes.  The FAQ can be found on the IRS website.

These are the key points employers should note, the IRS said when the final version of the 2020 Form W-4 was released:

  • All new employees hired as of Jan. 1, 2020, must complete the new form.   
  • Current employees are not required to complete a new form but can choose to adjust their withholding based on the new form.
  • Any adjustments made after Jan. 1, 2020, must be made using the new form.
  • Employers can still compute withholding based on information from employees' most recently submitted Form W-4 if employees choose not to adjust their withholding using the revised form.
  • A new Publication 15-T, Federal Income Tax Withholding Methods, to be released in mid-December for use with the new 2020 Form W-4, will include steps employers can take to determine federal withholding. 

It is also important to note the following:

  • If a newly hired employee in 2020 does not complete a 2020 Form W-4, the employer instructions state that employers should treat them as a single filer with no other adjustments.
  • If an employee only completes step 1 and 5, the employer is instructed to withhold based on the identified withholding status with no other adjustments.

As before, employees' tax liability is based on combined income from all sources, including second jobs, investment income and a spouse's earnings. Additional tax may be due at the time of filing if withholding is not sufficient to meet tax obligation, thus employees may want to make adjustments to reflect these additional incomes, deductions and credits.

We encourage all employees to meet with their tax advisor to better understand the changes.

All current Gallaudet employees who wish to make changes to their withholdings may do so through ADP Workforce Now.  All new hires who begin on January 1, 2020 and later must use the updated W4 Form which can be found here: https://www.irs.gov/pub/irs-pdf/fw4.pdf.  

  

Gallaudet

800 Florida Avenue NE
Washington, DC 20002

Gallaudet

800 Florida Avenue NE
Washington, DC 20002