New 2020 Federal Tax Changes Announced

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As was previously shared with faculty and staff, the Internal Revenue Service (IRS) has issued a new federal Form W-4 tax withholding form for use effective Jan. 1, 2020.

There are four major changes for 2020:

  1. All allowances (including self and dependents) have been removed from the Federal tax withholding tables.
  2. Introduces a new section on the first page for accounting for multiple jobs and a working spouse.
  3. W-4 will now be called Employee Withholding Certificate.
  4. Federal taxes will be based on your Filing Status election. Choices are:
    1. Single or Married Filing Separately
    2. Married filing jointly or Qualifying Widow(er)
    3. Head of household (Check only if you’re unmarried and pay more than half the costs of keeping up a home for yourself and a qualifying individual.)

Tax withholding tables have now changed for 2020.  The first biweekly and monthly payrolls that include the new 2020 tax tables will be biweekly two (Dec. 22 through Jan. 4 with pay date of Jan. 17, 2020) and January 2020 monthly payroll with pay date of Jan. 31, 2020. Once these payrolls have fully processed, employees may use the updated federal tax deduction information, from these payrolls, to complete the IRS Federal Tax Withholding Estimator at https://www.irs.gov/individuals/tax-withholding-estimator to help identify their estimated tax owed for 2020.

Employees are not required to complete a new 2020 Form W-4 withholding form. To make changes to your federal withholdings, complete a new 2020 W-4 Employee’s Withholding Certificate at https://www.irs.gov/pub/irs-pdf/fw4.pdf and send to Human Resources at MS3150.

For more information, contact Human Resources at (573) 651-2206.

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