Skip to main content
error showing content
Menu
error showing content
error showing content
error showing content

Final version of 2020 Form W-4 now available

December 09, 2019 21574

The IRS on Dec. 5 released a significantly revised Form W-4 for employees’ use when calculating their 2020 federal income tax withholding. The finalized form follows a draft version the IRS issued in May seeking comments from tax preparers and payroll companies.

For the 2019 tax year, there are no withholding allowances, and “allowances” was removed from the title of the form to reflect this change. Instead of claiming a certain amount of allowances based on exemptions, employees will now be asked to input the annual dollar amounts for:

  • Nonwage income, such as interest and dividends
  • Itemized and other deductions
  • Income tax credits expected for the tax year
  • Total annual taxable wages for all lower-paying jobs in the household (applies to employees with multiple jobs)

According to the IRS, “Employees who have submitted Form W-4 in any year before 2020 are not required to submit a new form. Employers will continue to compute withholding based on the information from the employee’s most recently submitted Form W-4.” However, employees hired after 2019 or employees wanting to make changes after 2019 must use the new form. Employers will have to adjust their systems accordingly.

The purpose of the new Form W-4 is to improve the accuracy of withholding and to incorporate the changes created by the Tax Cuts and Jobs Act of 2017. The IRS indicated that the form will make it easier for employees to simply and accurately calculate how much income tax they should set aside each paycheck.

Only minor language changes were made to the W-4 since the prior draft issued in May, most notably, according to the IRS, more language under “Your Privacy” on page 2 “to help the taxpayer understand exactly what checking the box in step 2(c) may do to withholdings.”

Final Publication 15-T to be released mid-December

The IRS has also released a draft of Publication 15-T, Federal Income Tax Withholding Methods, which includes an employer withholding worksheet, percentage-method withholding tables and wage-bracket method withholding tables. The worksheet is intended to let employers calculate the 2020 withholding amount using an employee's previously completed Form W-4 or the newly designed form.

Employers are encouraged to familiarize themselves with the changes in order to answer employees’ questions that may arise. The IRS stated that it released the draft versions of the W-4 and Pub 15-T so that employers or payroll companies can use them to program their payroll systems ahead of 2020.

Access the final W-4 or read the FAQ on the new W-4. Also access the draft Publication 15-T.

error showing content
error showing content
error showing content
error showing content
error showing content
error showing content
Photo of partial keyboard with finger hovering over a red key with the word Do you have dental benefit plan-related questions or issues? Help from CDA is a click away

Do you have a question about a dental benefit issue? You can receive timely assistance from a CDA Practice Support expert. Simply submit your question online using the dental submission form available within your cda.org account. 

Q4 Practice Health Check: Reviewing benefit claims processes and code changes for 2022

A new CDA Practice Health Check can help dental practices prepare for the American Dental Association’s CDT code changes for 2022. The ADA updates CDT codes annually, and failure to review the changes could lead to unnecessary claim denials and delays. 

It's that time of year: Are you prepared to be audited by a dental benefit plan?

Every July, CDA Practice Support starts hearing from members who have received notice from a dental benefit plan about a forthcoming audit. CDA's dental benefits analyst explains the post-pay audit, when dentists must participate in the audit and dentists' right to appeal the findings.