2020 Form W-4 Changes - How to Conduct an HR Audit - Part I

Sep 19, 2026

Explains the 2020 Form W-4 redesign and the practical expectations for employers starting January 1, 2020. Covers the IRS release timeline, key employer actions for new and current employees, and how withholding must be handled using the updated form for post–Jan. 1 adjustments. Describes the five-step structure of the revised form, privacy and accuracy goals, and references to Publication 15-T and related withholding methods and limits.

LanguageEnglish

CategoryForms

FormatPDF

Pages29

Reading Time10 min

AccessFree to download

Introduction

Key employer points for 2020

New form structure and withholding approach

Publication 15-T and withholding limitations

1/15/2020 | | | --- | | Presented by:

Mike Bourgon
| | | | --- | | PART I
Form W-4 for 2020 Employee Withholding
| 1/15/2020 |
Introduction | | --- | | The new form allows for more accurate withholding and greater privacy for employees.
| |
Introduction | | --- | | On December 5, 2019, the IRS released the longawaited final version of the 2020 Form W-4, retitled Employee's Withholding Certificate, with major revisions designed to make accurate income-tax withholding easier for employees starting January 1, 2020.
| |
Introduction | | --- | | These are the key points employers should note, the IRS said when the final version of the 2020 Form W-4 was released:
• All new employees hired as of Jan. 1, 2020, must complete the new form.
• Current employees are not required to complete anew form but can choose to adjust their withholding based on the new form.
| 1/15/2020 |
Introduction | | --- | | • Any adjustments made after Jan. 1, 2020, must be made using the new form.
• Employers can still compute withholding based on information from employees' most recently submitted Form W-4 if employees choose not to adjust their withholding using the revised form.
| |
Introduction | | --- | | • A new Publication 15-T, Federal Income Tax Withholding Methods, has been released (attached) for use with the new 2020 Form W-4, which includes steps employers can take to determine federal withholding.
| 1/15/2020 |
Introduction | | --- | | This publication supplements Pub. 15, Employer's Tax Guide, and Pub. 51, Agricultural Employer’s Tax Guide. It describes how to figure withholding using the Wage Bracket Method or Percentage Method, describes the alternative methods for figuring withholding, and provides the Tables for Withholding on Distributions of Indian Gaming Profits to Tribal Members. You may also use the Income Tax Withholding Assistant for Employers at [IRS.gov/ITWA](IRS.gov/ITWA to)[ to](IRS.gov/ITWA to) help you figure federal income tax withholding.
| |
Introduction | | --- | | Although this publication may be used in certain situations to figure federal income tax withholding on supplemental wages, the methods of withholding described in this publication can’t be used if the 37% mandatory flat rate withholding applies or if the 22% optional flat rate withholding is used to figure federal income tax withholding. For more information about withholding on supplemental wages, see section 7 of Pub. 15.
| |
Introduction | | --- | | Although this publication may be used to figure federal income tax withholding on periodic payments of pensions and annuities, the methods of withholding described in this publication can’t be used to figure withholding on non-periodic payments or withholding on eligible rollover distributions.
| 1/15/2020 |
Introduction | | --- | | The 2020 Form W-4 has been redesigned to reduce the form's complexity and to increase transparency and accuracy in the withholding system. Beginning with the 2020 Form W-4, employees will no longer be able to request adjustments to their withholding using withholding allowances. Instead, using the new Form W-4, employees will provide employers with amounts to increase or decrease the amount of taxes withheld and amounts to increase or decrease the amount of wage income subject to income tax withholding.
| |
Introduction | | --- | | The 2020 Form W-4 contains 5 steps. Every 2020 Form W-4 employers receive from an employee should show a completed Step 1 (name, address, social security number, and filing status) and a dated signature on Step 5. Employees will complete Steps 2, 3, and/or 4 only if relevant to their personal situations. Steps 2, 3, and 4 show adjustments that will affect withholding calculations.
| |
Introduction | | --- | | For employees who don’t complete any steps other than Step 1 and Step 5, employers will withhold the amount based on the

FAQs

What are the five steps on the 2020 Form W-4 and what should employers look for?

The form contains 5 steps. Employers should ensure a completed Step 1 (name, address, social security number, and filing status) and a dated signature on Step 5. Employees complete Steps 2, 3, and/or 4 only when relevant to their personal situation.

Sep 19, 2026

Upload by WPS_1786070896