The IRS has released a final version of the Form W-4 to be used by all new employees, and for all adjustments, effective January 1, 2020
ROCHESTER, N.Y., Dec. 5, 2019 /PRNewswire/ -- Paychex, Inc., a leading provider of HR technology solutions for human resources, payroll, benefits, and insurance services, has updated its systems to accommodate the new Form W-4 issued late yesterday by the IRS, while continuing to support calculation methods of the previous W-4 for its customers. All new employees hired as of January 1, 2020 must complete the new Form W-4, as well as any current employees who wish to make withholding adjustments.
"Throughout this process, which began with the passage of the Tax Cuts and Jobs Act of 2017, Paychex has actively engaged with the IRS, providing feedback to the draft versions of the Form W-4," said Frank Fiorille, Paychex vice president of Risk, Compliance, and Data Analytics. "We're proud of the leadership role we've taken in the payroll industry, working with the IRS to address the areas of greatest importance, communicating with our customers about this impactful change, and quickly updating our systems to support payroll calculations based on both the new W-4 and the previous version."
What has changed?
The IRS has updated the form to better reflect the current tax code established under the Tax Cuts and Jobs Act of 2017. Key changes include the elimination of withholding allowances and the ability for taxpayers to have more tax withheld to address the concerns of those who had to unexpectedly pay tax when filing in the years following the tax reform legislation.
Who does this change impact?
All new employees hired as of January 1, 2020 must complete the new form. Existing employees are not required to complete a new form but can choose to adjust their withholding based on the new form. Any adjustments made after January 1, 2020 must be made using the new form. Employers, therefore, must be prepared to compute employees' withholdings based on both the old and new versions of the Form W-4.
How is Paychex supporting customers?
Over the past several months, Paychex has provided updates to its customers to support them through this change, including informational resources and links to the draft versions of the updated form, along with withholding calculators. With the official release of the new W-4, Paychex customers will have seamless access to the updated W-4 for new employees, as well as employees who choose to make withholding adjustments.
Visit Paychex WORX for an overview of the new Form W-4 and the considerations to keep in mind as the form rolls out next year.
As part of the new W-4, the IRS has provided a worksheet to guide taxpayers through the completion of the new form available at www.irs.gov/pub/irs-pdf/fw4.pdf.
Paychex, Inc. (NASDAQ: PAYX) is a leading provider of integrated human capital management solutions for payroll, benefits, human resources, and insurance services. By combining its innovative software-as-a-service technology and mobility platform with dedicated, personal service, Paychex empowers small- and medium-sized business owners to focus on the growth and management of their business. Backed by more than 45 years of industry expertise, Paychex serves over 670,000 payroll clients as of May 31, 2019, across more than 100 locations in the U.S. and Europe, and pays one out of every 12 American private sector employees. Learn more about Paychex by visiting www.paychex.com, and stay connected on Twitter and LinkedIn.
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