New and Improved (?) 2020 Form W-4
Please see below for additional instructions and information regarding this program.
The Internal Revenue Service (IRS) has released the second draft of the 2020 form W-4 along with publication 15 T which contains the withholding instructions. Compliance with the Tax Cuts and Jobs Act has forced the IRS to completely revamp this form for 2020. This webinar will review the latest draft of this form and its corresponding publication 15-T in great detail. The webinar includes several examples of calculating federal income tax withholding beginning January 1, 2020. We will also tackle the question of how to continue using prior year versions of the form W-4.
Topics covered include:
- Review of the latest draft form W-4 for 2020
- Review of the employer instructions and publication 15-T
- Examples of calculating income tax withholding
- Discussion of how to handle calculating income tax withholding using prior versions of the form
- Learn how to use the new form W-4 including the various new tables
- Understand the employer instructions in publication 15 T
- Discover the various methods of calculating income tax withholding using current and prior year forms W-4.
Who can Benefit:
- Payroll Executives/Managers/Administrators/Professionals/Practitioners/Entry Level Personnel
- Human Resources Executives/Managers/Administrators
- Accounting Personnel
- Business Owners/Executive Officers/Operations and Departmental Managers
- Attorneys/Legal Professionals
- Any individual or entity that must deal with the complexities and requirements of Payroll compliance issues
- Our Focus For Today 00:01:12
- Notable Changes to the Form 00:01:34
- Tax Cuts and Jobs Act 00:01:37
- Notable Changes 00:04:04
- Notable Changes (cont’d) 00:05:01
- Five Steps to Completion 00:05:39
- Five Steps to Completion (cont’d) 00:05:54
- Worksheets 00:06:24
- Multiple Jobs Household 00:06:38
- Multiple Jobs Household - Multiple Jobs Worksheet Step 2(b) 00:08:47
- Multiple Jobs Household - Tax Table 00:08:53
- Worksheets - Worksheet Step 4(b) - Deductions Worksheet 00:09:01
- Effects on Payroll in 2020 00:11:06
- Effects on Payroll as of 01-01-2020 00:11:11
- No Form? 00:12:33
- Claiming Exempt or NRA 00:13:05
- Step by Step Overview of the Form 00:14:52
- Step 1: Enter Personal Information 00:15:01
- Step 1: Enter Personal Information (cont’d) 00:15:50
- Step 2:Multiple Jobs/Spouse Works 00:16:49
- Step 2:Multiple Jobs/Spouse Works (cont’d) 00:18:03
- Step 3: Claim Dependants 00:18:34
- Step 4: Optional: Other Adjustments 00:19:47
- Step 4(a): Other Income 00:19:59
- Step 4(b): Deductions 00:21:21
- Step 4(c): Other Income 00:22:03
- Step 5: Sign Here 00:25:08
- Publication 15-T 00:25:31
- Publication 15-T (cont’d) 00:26:33
- Employer Worksheets 00:27:49
- Method of Withholding 00:27:58
- Employer Worksheet #1 00:29:49
- Manual Systems 00:30:16
- Worksheets #2 - #5 Examples 00:30:44
- Calculating Withholding 00:30:53
- Example 1 00:30:56
- Example 1 Employer Worksheet 00:32:03
- Example 2 00:38:20
- Example 2 Form W-4 00:38:30
- Example 2 Employer Worksheet 00:40:10
- Example 3 Form W-4 00:45:41
- Example 3 Tax Table 00:46:07
- Example 3 Employer Worksheet 00:47:05
- Employee Withholding Certificates - The States 00:54:38
- Examples 00:56:13
- Form W-4 Equivalents Map 00:57:36
- Final Questions 00:59:31
- Presentation Closing 01:11:13
- Arizona Form A-4 00:56:36
- California DE4 Form 00:57:22
- Deductions Worksheet Step 4(b) 00:06:33, 00:09:09
- Dependent 00:05:49
- Exempt 00:13:07
- Form W-4 00:01:14, 00:04:57, 00:25:44
- Multiple Jobs Worksheet Step2(b) 00:06:29, 00:08:47
- Nonresident Alien (NRA) 00:13:05, 00:16:11
- Publication 15-T 00:13:32, 00:25:35
- Tax Cuts and Jobs Act 00:02:07
- Tax Withholding Estimator 00:07:06
Arizona Form A-4: Arizona law requires your employer to withhold Arizona income tax from your wages for work done in Arizona. The amount withheld is applied to your Arizona income tax due when you file your tax return. The amount withheld is a percentage of your gross taxable wages from every paycheck. You may also have your employer withhold an extra amount from each paycheck.
Deductions Worksheet Step 4(b): Fill out this section if you expect to claim deductions (such as itemized deductions) other than the standard deduction and want to reduce your withholding. To estimate your 2020 deductions use the Deductions Worksheet provided on page three of the W-4 form.
Dependent: A dependent is a person other than the taxpayer or spouse who entitles the taxpayer to claim a dependency exemption. Each dependency exemption decreases income subject to tax by the exemption amount. Your dependent must be a U.S. citizen, a national, a resident alien of the U.S., or a resident of Canada or Mexico. A dependent can be claimed by one and only one taxpayer in any given year.
Form W-4: Form W-4 (otherwise known as the "Employee's Withholding Allowance Certificate") is an Internal Revenue Service (IRS) tax form completed by an employee in the United States to indicate his or her tax situation (exemptions, status, etc.) to the employer.
Multiple Jobs Worksheet Step2(b): If you choose the option in Step 2(b) on Form W-4, complete this worksheet (which calculates the total extra tax for all jobs) on only ONE Form W-4. The IRS advises that the worksheet should only be completed on one W-4 form and the result should be entered for the highest paying job only, to end up with the most accurate withholding.
Nonresident Alien (NRA): This income is taxed at a flat 30% rate, unless a tax treaty specifies a lower rate. Nonresident aliens must file and pay any tax due using Form 1040NR, U.S. Nonresident Alien Income Tax Return or Form 1040NR-EZ, U.S. Income Tax Return for Certain Nonresident Aliens with No Dependents.
Publication 15-T: Employers use Publication 15-T to figure the amount of federal income tax to withhold from their employees' wages.
Tax Cuts and Jobs Act: The Act to provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018, Pub.L. 115–97, is a congressional revenue act of the United States originally introduced in Congress as the Tax Cuts and Jobs Act, that amended the Internal Revenue Code of 1986.
Tax Withholding Estimator: The IRS encourages everyone to use the Tax Withholding Estimator to perform a “paycheck checkup.” This will help you make sure you have the right amount of tax withheld from your paycheck.
California DE4 Form: This certificate, DE 4, is for California Personal Income Tax (PIT) withholding purposes only. The DE4 is used to compute the amount of taxes to be withheld from your wages, by your employer, to accurately reflect your state tax withholding obligation.
Exempt : Exempt employee is a term that refers to a category of employees set out in the Fair Labor Standards Act. They do not receive overtime pay, nor do they qualify for the minimum wage
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