For the first time in many years the IRS has significantly revamped the Federal W-4 form for 2020. This new form will be required to be completed by all new employees beginning on January 1, 2020. Any existing employees who wish to make changes to their federal tax withholding after January 1st will also need to use the new version. Employers can ask, but cannot require, all existing employees to submit a new version of the W-4 form. However, if an employee hired before January 1, 2020 does not complete a 2020 W-4 employers must use the last completed W-4 to calculate appropriate federal withholding for the employee. Continue reading
Each year there are a number of payroll limits that may change. In preparation for 2018, below is a list of changes that will take effect beginning January 1, 2018 (unless otherwise noted).
- Tax bracket changes (federal) issued by the IRS on October 19, 2017 in Revenue Procedure 2017-58 – click here for more information.
- Social Security limit will increase from $127,200 to $128,400 (NOTE: The Social Security Administration had previously announced a limit of $128,700 but that has been revised to $128,400).