On January 1, 2020, a new W-4 Form goes into effect. The new W-4 Form is a result of the Tax Cuts and Jobs Act and reflects:
- Decreased Individual Tax Brackets
- Removal of Personal Exemptions
- Estabishment of New Withholding Tables
- Reduced Complexity of the Form
All new hires in 2020 must use the new W-4 Form. Existing employees do not have to complete a new W-4. After January 1st, any existing employee making any change to their W-4 will use the new Form.
The Form consists of 5 steps: Steps 1 and 5 are required to be completed and Steps 2, 3 and 4 are optional. Clark & Lavey, with our Business Partner Amy Floody of Paylocity, have created a brief slide deck describing the changes, which may downloaded HERE.