IRS Releases Revamped 2020 W-4 Form

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

Important Tips on Tip Withholding

If your employees regularly receive tips, it is important to comply with the withholding requirements and pay your company’s fair share of employment taxes.¬† Expensive penalties can be assessed on both employers and employees if the tip reporting rules are not followed.

Here is a brief summary of some of the requirements for federal income tax and FICA (Social Security and Medicare) withholding, as well as filing.

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