IRS Issues Final Version of 2020 Form W-4

On December 5, 2019, the Internal Revenue Service (IRS) issued the redesigned Form W-4 (Employee’s Withholding Certificate). Employees hired beginning January 1, 2020, and any employee who makes withholding changes in 2020 must use the revised W-4, which reflects changes from the Tax Cuts and Jobs Act of 2018. However, employees who have submitted a W-4 in any year before 2020 will not need to submit a new form if they do not make changes to their withholding.

The new form:

  • No longer uses withholding allowances.
  • Offers a five-step process to determine withholding; the IRS also offers an online IRS Withholding Estimator at www.irs.gov/W4App
  • New Marital Status option: Head of Household

To assist employers in figuring out federal income tax withholding, the IRS has also issued Publication 15-T (Federal Income Tax Withholding Methods), currently in draft form.