The Internal Revenue Service (IRS) has released the 2020 Form W-4, Employee’s Withholding Certificate, and it is very different from previous versions.
The IRS is not requiring all employees to complete the revised form and has designed the withholding tables to work with both the new 2020 and prior year forms. However, certain employees will be required to use the new form:
- Those hired in 2020 and;
- Anyone who makes withholding changes during 2020.
Even though a revised form may not be required, it is recommended that all employees perform a “paycheck checkup” to see if any adjustments to current withholdings are warranted. To conduct the checkup, you can use the IRS’s Tax Withholding Estimator. To effectively use the estimator, it is helpful to have a copy of your most recent pay stub and tax return.
If you do not submit a new Form W-4, withholding will continue based on your previously submitted form.
Employees choosing to complete the new 2020 Form W-4 should, carefully read the form instructions.
- You MUST complete Steps 1 and 5.
- Steps 2, 3, and 4 are optional, but completing them may help ensure that your federal income tax withholding will more accurately match your tax liability.
The IRS has also published Frequently Asked Questions that you may find helpful as you complete the form.
PLEASE NOTE: University of Montevallo Human Resources and Payroll staff are not tax advisors and may not assist employees in completing the IRS Tax Withholding Estimator or the 2020 Form W-4. If you require assistance in either of these areas, contact a personal tax advisor.