• LinkedIn
  • YouTube
  • Twitter
  • Facebook
  • Google+

Draft 2020 W-4: Perhaps less horrible than the 2019 draft

Get PDF file
Alice Gilman

by on
in Centerpiece,Office Management,Payroll Management

The IRS promised the first draft of the 2020 W-4 by the end of May and it kept its word. But look high and low on the draft and you will not see any line for employees to indicate their withholding allowances. Why: The Tax Cuts and Jobs Act suspended personal exemptions through 2025.

That’s bad news for you, since payroll systems are currently built based on the number of withholding allowances employees claim.

Another change that will necessitate a payroll software upgrade: the addition of head of household status on Line 1c. Head of household status has been around for a long time on 1040s, but never on W-4s.

This is probably a pretty good indication that the IRS will revamp the withholding tables to accommodate a third status.

 What’s missing

The critical piece of information—instructions for employers—wasn’t released with the draft form, although the IRS intends to release instructions for empl...(register to read more)

To read the rest of this article you must first register with your email address.

Email Address:

Leave a Comment