By Payroll and Entitlements Editorial Staff
The IRS has issued draft 2020 percentage-method and wage-bracket (weekly only) withholding tables. The early release draft of new Publication 15-T, Federal Income Tax Withholding Methods, for tax year 2020, is for your information, review, and feedback. The draft of Publication 15-T has been released to provide the computation of withholding that employers will make under the percentage method and wage bracket Method tables using both the new 2020 Form W-4 and the Forms W-4 from before 2020. Users who have comments should submit them to [email protected] Comments should be submitted by July 8, 2019 to be considered timely.
Calculation is changing. The way employers will figure federal income tax withholding for 2020 Form W-4, Employee’s Withholding Allowance Certificate, is changing to match the changes to the new form. This special draft release of new Pub. 15-T contains a first look at the new employer steps to figure federal income tax withholding. The calculation of withholding for Form W-4 submitted prior to 2020 is unchanged from prior years, but this publication describes how to compute withholding for 2020 and earlier Forms W-4 as one procedure.
Redesign. The 2020 Form W-4 has been redesigned to reduce the form's complexity and to increase transparency and accuracy in the withholding system. Beginning with the 2020 Form W-4, employees will no longer be able to request adjustments to their withholding using withholding allowances. Instead, using the new Form W-4, employees will provide employers with amounts to increase or reduce taxes and amounts to increase or decrease the amount of wage income subject to income tax withholding. The computation described in the Employer’s Withholding Worksheet will allow employers to figure withholding regardless of whether the employee provided a Form W-4 in an earlier year or will provide a new Form W-4 in 2020. (IRS Pub. 15-T, Federal Income Tax Withholding Methods for Use in 2020, June 11, 2019.)
Interested in submitting an article?
Submit your information to us today!Learn More