On May 31, the IRS released a draft 2020 Form W-4, Employee’s Withholding Allowance Certificate. The form has been extensively revised in response to feedback from payroll and tax professionals.
While the new design is not yet ready for prime time, it is intended to provide simplicity, accuracy and privacy for employees while minimizing burden for employers and payroll processors. For now, however, taxpayers should continue to use the current Form W-4 for 2019 and perform a “paycheck checkup” to ensure they are having the right amount of tax withheld.
Comments on the draft form will be taken for 30 days. Then the IRS will issue a “near-final draft” in July and the final 2020 form in November. The IRS will also release employer instructions for the form in the next few weeks and will seek comments on those as well. Review the details and find out how to comment to the IRS.