As previously shared, the Internal Revenue Service recently announced changes to the way an employee’s withholding amounts are calculated for 2020. Employees were not required to complete a new 2020 Withholding Certificate as their current elections would still pull from 2019 withholding tables. However, all future W-4 changes will be calculated on the new 2020 tax tables.
Employees who choose to update their tax withholdings should pay close attention to Step 2, Box C, of the new 2020 Withholding Certificate if having multiple jobs or a spouse that works. If this box is not selected, taxes are calculated without regard to additional income in your household. In turn, considerably fewer federal taxes are withheld.
Employees are encouraged to complete the IRS Federal Tax Withholding Estimator to help identify estimated tax owed for 2020.
Employees who wish to make changes to federal withholdings should complete a new 2020 W-4 Employee’s Withholding Certificate, available at https://www.irs.gov/pub/irs-pdf/fw4.pdf, and send to Human Resources, MS3150.
For more information, contact Human Resources at ext. 2206.