The re-designed Form W-4
uses a building block approach that replaces complicated worksheets with straightforward questions that make it easier for employees to determine a more accurate withholding.
"The calculator and new Form W-4
can be used by employees who wish to update their withholding in response to the new law or changes in their personal circumstances in 2018, and by workers starting a new job," according to the IRS.
exemption claim form requirements vary by federal, state and local jurisdictions, and regulations often change.
Previous regulations required employers to submit certain employees' Forms W-4
to the IRS on the agency's written request.
The Internal Revenue Service says that when an employee refuses to complete a Form W-4
, the employer should still take taxes out of the employee's pay.
On the other hand, payroll managers are not required to accept W-4s
they know to be invalid, because of statements made by the employee, illegal alterations or the use of the W-4T.
Each employee completes a W-4
and then the employer, using the amount of wages of the employee, the pay period involved, the number of withholding allowances claimed by the employee and the specific method of wage withholding (each of the methods results in approximately the same amount of tax being withheld), determines the taxes to be withheld.
The Treasury and IRS will continue working closely with the payroll and the tax community as additional changes are made to the Form W-4
for use in 2020.
In the case of a large refund, it's best to reduce the amount of tax withheld by adjusting the W-4
. This allows the employee to retain more of their earnings rather than loan it to the IRS interest free.
To explain both the standard procedure and an alternate for preparing and filing Forms W-2; 941; W-4
, Employee's Withholding Allowance Certificate; and W-5, Earned Income Credit Advance Payment Certificate, in certain acquisitions.
* Examine the employee's Social Security card--make sure the name and number match the information on file and on the W-4
. Employers can ask to see the employee's card, but can't require it.
The Internal Revenue Service today released an updated Withholding Calculator on IRS.gov and a new version of Form W-4
to help taxpayers check their 2018 tax withholding following passage of the Tax Cuts and Jobs Act in December.