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Like past years, the IRS released changes to the income tax withholding tables for 2020. In addition to new wage brackets, there are significant changes to how employers will handle tax withholding. These changes are in response to the Tax Cuts and Jobs Act of 2017.
Like past years, the IRS released changes to the income tax withholding tables for 2020. In addition to new wage brackets, there are significant changes to how employers will handle tax withholding. These changes are in response to the Tax Cuts and Jobs Act of 2017.
On December 5, the IRS issued the redesigned 2020 Form W-4 (Employee's Withholding Certificate). The new form no longer uses withholding allowances. Instead, there is a five-step process and new Publication 15-T (Federal Income Tax Withholding Methods) for determining employee withholding.
Understand Changes to Employer Taxes in 2020 If you've been running payroll for a while, you're probably familiar with FICA taxes, the payroll taxes that fund Social Security and Medicare programs. The payroll tax rate that goes toward Social Security is currently set at 6.2%, and will stay the same in 2020.
The new Form W-4 goes into effect for 2020. Employees use it to tailor the amount of income tax that's withheld from their paychecks. The document reflects changes from the Tax Cuts and Jobs Act, the overhaul of the tax code that went into effect in 2018.
Most Workers Don't Need to Submit a New Form Most workers aren't required to file a new W-4 form with their employer in 2020but you might want to anyway. However, if you start a new job after 2019, you'll have to complete a new W-4 form.
On December 5, 2019, the Internal Revenue Service (IRS) released the final 2020 Form W-4, Employee's Withholding Certificate. For newly hired employees after 2019, and for all existing employees who wish to adjust their withholding after 2019, the 2020 version will be the only valid Form W-4.
Step 1: Enter Personal Information. This step must be completed by all employees. Step 2: Multiple Jobs or Spouse Works. Step 3: Claim Dependents. Step 4: Other Adjustments. Step 5: Sign the form.

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