Who doesn’t love paperwork – especially on your first day at a new job? Just us, huh? That’s fair. But seriously, filling out countless forms is no one’s idea of a fun time. The ugly truth is, however, paperwork is a part of life. That’s especially true when it comes to tax forms. How does that saying go about the only certainties in life? Well, a brand new W-4 form is here to make things a little uncertain.
It can be a particularly sticky form even though most of us have filled it out more than once. That good ole W-4 is back with a brand new look for 2020 and you’re bound to get a few emails, instant messages, phone calls, texts, drop-ins, or carrier pigeons with plenty of questions. Here are some of the most common questions regarding the new W-4 for when your team members come a-knockin’.
Nope! If your employment began before 2020, the old W-4 is still valid. However, it’s worth telling employees that the new W-4 is much simpler and provides much more privacy when it comes to employee withholdings. In other words, employees don’t have to disclose their non-job income while still allowing for withholdings from your paycheck.
Again, the only employees who must fill out the new W-4 are those who began working at your organization after January 1, 2020. But hey, at least it’ll be easier for them.
Sorry to be so noncommittal, but it really depends on your tax situation. For a lot of folks it will be pretty simple. If your tax situation doesn’t carry any caveats or extra income, Sections 1 and 5 are all probably all that’s needed. Section 1 is your standard information: name, DOB, SSN, filing status, etc. Section 5 is just your signature. Boom, done.
It definitely feels weird leaving so much of a form blank. That was certainly a common opinion about the old W-4 form. While much of the new form will also be left blank, an employee’s follow-up question will probably be “what does that mean for my taxes?” In short, if an employee only completes step one and signs their name, their withholding will be based on the standard deduction for their filing status and tax rates. That’s it!
We get it, some folks like to stash a little extra money throughout the year and look forward to that refund check. If your employee would like additional withholding, the easiest thing to do is fill out Step 4(c). That’s where they can enter the additional amount they’d like to withhold.
Filling out a new W-4 is just a drop in the employee onboarding bucket. We all know how much there is to keep track. Let CTR help you simplify the process through the power of isolved. Learn more about streamlining your employee onboarding process here.