THE W-4 NAME HAS BEEN ‘RE-TITLED’
AND UPDATED FOR 2020

On Dec. 5, the IRS released the long-awaited final version of the 2020 Form W-4, re-titled
Employee’s Withholding Certificate, with major revisions designed to make accurate income-tax withholding easier for employees starting next year. In August, the IRS posted FAQs about the changes incorporated in the revised form.

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.

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