IRS’ new Form W-4 revealed: What Payroll should do next A section-by-section look of anticipated 2020 form The wait is over: The IRS has just released its first draft of the revamped Form W-4 for 2020 and, as expected, it’s much more detailed than past versions of the form. The new form takes all the changes from the Tax Cuts and Jobs Act into account for more accurate withholding. Overview of form Each line of the 2020 Form W-4 is divided into “Steps”. Step 1 is where employees will enter their personal info. Steps 2-4 deal with the factors that’ll affect withholding the most. Worker must follow the instructions in Step 2 if there are multiple jobs in their household. To complete this step, workers can either: Enter their info into the withholding calculator at Use the worksheet 1 on page 3 of the new form or, Select a checkbox if there are only two jobs in their household (though this may cause more taxes to be withheld than necessary). Steps 3 and 4 are where employees can claim dependents or list other adjustment. Lines 3 through 4b should be completed on Form W-4 for the highest-paying job in the worker’s household. Employees can enter the additional amounts they want withheld on Line 4c and claim exemption from withholding on Line 4d. Step 5 is where the employee the form and the employer lists its info, including the worker’s first date of employment. Moving forward All new hires and any current employees who want to adjust their withholdings must use the new Form W-4 starting Jan 1, 2020. Since not every employee will be require to fill out the redesigned form, the IRS plans to release additional guidance for Payroll on hot toe calculate withholding based on both the new W-4 and the old version. Because the new form is so detailed, employees may want to fill it out at home, perhaps seeking advice from a financial advisor – so Payroll should consider a plan for how it’ll handle this delay in the process. More info: