Important News - IRS Releases New W4 Form for 2020

The IRS has just released an updated W-4 form to be used effective 01/01/2020 (download the new form below).  All new employees hired as of January 1, 2020 must complete this new version on the form.  Current employees are not required to complete a new form unless they would like to make changes to their withholdings. 

The form has changed quite a bit this year, with an all new format.  The IRS is hoping this will make filling out the form easier, however, it may throw your employees off at first.  You may want to consider providing this new form to your employees in advance with some explanation of the changes to the format. 

What’s Changed?

The new 2020 W-4 is now a 5-step process, as follows:

Step 1: Enter personal information.

Step 2: Indicate multiple jobs or if spouse works.

Step 3: Claim dependents.

Step 4: Make other adjustments including for:

  • Step 4(a): Investment and retirement income.
  • Step 4(b): Deductions other than the standard deduction.
  • Step 4(c): Any extra tax withholding per pay period.

Step 5: Sign the form.

If you typically have employees complete their W-4 through your HRIS (Paylocity, ADP, etc.), the system should update automatically 1/1, but we recommend double checking to confirm this. Also, some employees may find a printed W-4 useful as reference the first time they complete the W-4 in your system.  You can download this new form below.

Please reach out to us if you have any questions.  (805) 483-1995 or