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W4 Form: What I Need to Know before 2020 Payroll

IRS published the new 2020 Version W-4 with major change: allowances are no longer used for the redesigned Form W-4.

This change is meant to increase transparency, simplicity, and accuracy of the form. In the past, the value of a withholding allowance was tied to the amount of the personal exemption. Due to changes in law, currently you cannot claim personal exemptions or dependency exemptions.

We have updated our software. ezPaycheck 2020 payroll software, ezAccounting 2020 software, and online payroll system will support both previoius and new W-4 forms.

1. W4 download link and Instruction

2. Are all employees required to furnish a new Form w-4
No. Employees who have furnished Form W-4 in any year before 2020 are not required to furnish a new form merely because of the redesign. Employers will continue to compute withholding based on the information from the employee's most recently furnished Form W-4.

3. Are new employees first paid after 2019 requried to use the redesigend form?
Yes. All new employees first paid after 2019 must use the redesigned form. Similarly, any other employee who wishes to adjust their withholding must use the redesigned form.

4. How do I treat new employees first paid after 2019 who do not furnish a Form W-4?
New employees first paid after 2019 who fail to furnish a Form W-4 will be treated as a single filer with no other adjustments. This means that a single filer's standard deduction with no other entries will be taken into account in determining withholding. This treatment also generally applies to employees who previously worked for you who were rehired in 2020 and did not furnish a new Form W-4.

5. What about employees paid prior to 2020 who want to adjust withholding from their pay dated January 1, 2020, or later?
Employees must use the redesigned form.

6. When can we start using the new 2020 Form W-4
The new 2020 Form W-4 can be used with respect to wages to be paid in 2020.

7. How can I edit employee profile?
For ezPaycheck payroll software clients:
- If you hire a new employee, please follow this guide to enter the employee information.

- If your current employee submits a new Form W-4, please follow this guide to edit employee profile.

8. How to Calculate 2020 Federal Income Withhold Manually with New 2020 W4 form

9. How to Calculate 2020 Federal Income Withhold Manually with 2019 and Earlier W4 form

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If you have not installed this software, you can download and try it free for 30 days with no obligation and no credit card needed. ezPaycheck is available for both Windows and Mac computers.

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More information from IRS Site:

  • Form W-4 Download link and Instruction

  • Form W-4 FAQs

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