Having employees complete Forms W-4 electronically can be a convenience to you, but be careful: IRS has issued strict guidance, and it’s recently been expanded.
Employers don’t have a “license” to simplify or modify electronic substitutes to paper W-4s, IRS warned.
After rolling out guidelines on implementing an electronic system for Forms W-4, IRS received questions. Now, you can find answers to some of those questions.
Meanwhile, the pressure’s on to get things right for 2023, as IRS just released the final version of Form W-4, Employee’s Withholding Certificate.