More information about the new IRS Form W-4
Last November, IPS shared how a new, less complicated and more transparent IRS Form W-4 was going into effect on January 1, 2020. While it was designed to simplify the tax withholding process, some business owners remain uncertain of how and when to use it:
Do existing employees need to complete a new W-4 for this year?
Your employees do not need to complete a new W-4 each year, unless they are claiming exempt from withholding, or they want to change their withholding status. If they are claiming exempt, a new W-4 must be completed for your records by February 14, 2020. If they are changing their withholding, then they must use the new 2020 W-4 form.
How does my employee complete the new W-4? What do I use for state withholding?
There are excellent resources available on the IRS website to help complete the form. Each state has a withholding form that employees should fill out in order to elect their withholding status. In the State of Wisconsin, that is form WT-4.
For answers to more questions about the W-4, visit the IRS website FAQ page.