Understanding the New 2020 Withholding Method Workflows
Revised drafts of the 2020 Form W-4 and Publication 15-T were released in August for employers to begin testing and programming payroll systems. The withholding instructions in the second draft of Publication 15-T, Federal Income Tax Withholding Methods, are much different than in the first draft, and now would include five worksheets calculating withholding using the revised Form W-4 and older forms that remain on file. Employers will need to become familiar with changes to the new withholding methods in preparation for a regime that requires more than one system. The second draft 2020 Form W-4 was renamed “Employee’s Withholding Certificate,” but was not substantially altered from the first draft. This webinar focuses on how withholding methods are to be updated as the IRS phases out the use of withholding allowances.
This webinar will cover:
- The layout of the new Form W-4
- Withholding using 2020 Forms W-4 vs withholding using pre-2020 forms
- Changes to percentage method and wage bracket methods of withholding
- Comparisons to current withholding methods
- Identify changes to Form W-4
- Explain changes to withholding methods for 2020
- Discuss how new methods remain compatible with older Forms W-4
- Calculate withholding using the 2020 Form W-4 and older forms
Who would benefit most from attending this Bloomberg Tax webinar?
Payroll practitioners, payroll managers, human resources professionals and managers, tax accountants, tax attorneys