The New W-4 Form for 2020 and Beyond…
Starting in 2020, any new hires will be required to fill out the new and updated W-4 form. All prior employees will still be able to use the W-4 for that they filled out at the hire date.
The new W-4 form will no longer calculate your withholding using personal exemptions as the Tax Cuts and Jobs Act removed personal exemptions completely. The new W-4 will calculate withholding using the filing status of the taxpayers and the standard deduction that goes with the filing status. This new form is designed to make it easier for employees that have more than one job and married couples to be able to withhold the correct amount of taxes on each paycheck.
Employees can also choose to have their itemized deductions withheld alongside any credits that they are eligible to receive such as the child tax credit. Employees can still choose to add extra withholding from each paycheck just as you could in the prior form.
As with any new change, it will take some getting used to. If there is any confusion on what to put on your W-4 form, call SBS CPA Group at 260-407-5000 and talk to one of our CPAs to help you better understand the new W-4 form.