The IRS has released an updated version of its W-4 form (“Employee’s Withholding Certificate” form) which employers use to determine each employee’s federal tax withholdings. The new form includes instructions on how to complete it. This form is used with new hires and for any employee wishing to change their withholding declarations.
Use of the new form becomes mandatory on January 1, 2020. The new form does not invalidate prior versions and employers are not expected to replace W-4 forms from previous years with the 2020 version. Employers should become familiar with the updates to the W-4 form and make it available for all new hires in 2020.
Learn more by reading this FAQ on the IRS website: https://www.irs.gov/newsroom/faqs-on-the-2020-form-w-4
Clients of Acumen Advisors are encouraged to contact their Advisor or Account Manager for more specific information on this topic.