Form W-4 for 2020: What�s New? What�s Changed?

Key Take Away:
Since the 2020 Form W-4 is so different, employers must be prepared for questions and requests about the form. Payroll managers and team members must be prepared to help employees with the new Form W-4 without overstepping the boundaries of payroll best practice. Form W-4 is a vehicle for determining the amount of payroll withholding. The 2020 Form W-4 is quite different from prior forms, so what is the best way to assist employees in being compliant? For example, the new form does not use allowances, so the withholding must be calculated using other means. Can your payroll team respond to the following questions?

Where should employees go to find out how to fill out the form? Do all employees have to file a new form effective January 1? Where can an employee go for reference? How can your payroll/HCM vendor be of assistance to you in this venture?

Overview:
The 2020 Form W-4 is radically different from previous forms. The changes will create questions from your employees. Be ready to answer them without overstepping the bounds of best practice. Have you reviewed the form? Has it been deployed in your company? If so, what has been the return rate compared to previous January returns? Learn how the new form differs, and what employees can do to enhance their own understanding of their withholding obligations. We will review the form, discuss the possible pitfalls, and ensure that payroll teams can distribute the form and assist the employees without giving “tax advice”. We will also review the tools available to help with the transition.

Why Should You Attend:
Employees will need to use this form for any withholding changes effective on or after January 1, 2020. Expect questions as to how the employees are to complete the form. Do you know the answers? How will you handle employees who do not wish to change their withholding for this year? What is your normal process in January -send out forms, wait for requests, distribute to remote locations? You may need to change the process because of this new form. We will give you the information needed to make informed decisions.

Areas Covered in the Session:
•  What do employees have to do if they do not want to change their withholding?
•  How can employees determine their liability?
•  Can employees still claim “Exempt” on the new Form?
•  If they can, how is it done?
•  What references do employees need to find out what to do?
•  Are there new methods to help both employer and employee estimate withholding?
•  How does payroll handle an IRS “Lock-In” Letter with the new W-4 Form?
•  How are state withholding forms affected?