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Alert employees to check their tax withholding and possibly file a new W Members may download one copy of our sample forms and templates for your personal use within your organization. Neither members nor non-members may reproduce such samples in any other way e. Editor's Note: Due to significant interest from readers, we're republishing our news article on the new Form W-4 from the IRS, along with a calculator to help employees figure out how much to withhold from taxes for The new Tax Cuts and Jobs Act made several changes to tax law, and workers might want to adjust their withholding amounts. Employees can use the online calculator to check their tax withholding following passage of the Tax Cuts and Jobs Act in December.
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IRS Issues New Form W-4 and Updates Tax Withholding Calculator
IRS Issues Form W-4
Christopher Wood, CPP. December 5, Highlight: Not all employees must complete the Form W The IRS has designed the withholding tables to work with both the Form W-4 and prior year forms. The new form no longer uses withholding allowances.
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10 Things Every Worker Needs to Know About the New W-4 Form for 2020
The IRS had plenty of unhappy customers during the filing season. A lot of people who got tax refunds in previous years were shocked to discover that they had to pay taxes when they filed their tax return. The tax reform law reduced tax rates, doubled the standard deduction, and increased the child credit, which lowered the overall tax bill for many people…but the IRS also reduced the amount of tax withheld from wages in an effort to synchronize withholding with these tax law changes. Things didn't quite work out as planned, though, and many people didn't have enough taxes withheld from their paychecks in to cover the taxes they owed. To avoid this problem going forward, the IRS overhauled the process for determining how much federal income tax an employer must withhold from an employee's paycheck.
Access your account 24 hours a day and receive immediate confirmation your return was filed. You can also save payment information and send messages and receive notification from the Department. In the legislative session, House Bill was passed and amended Section In an attempt to ease implementation of the new withholding formula, the Department of Revenue chose to remove the federal tax deduction from the withholding tax calculation. This change may result in a small increase to the amount withheld from employees' paychecks.