Attention MMC Clients & Employees:

The IRS has issued the a new 2020 W-4 form.  The IRS only requires (1) employees hired in 2020 to complete the new form and (2) any employee who makes withholding changes in 2020.  Below is a simple 5 step instruction on how to complete the form.  We are also providing links to the form, frequently asked questions (FAQs), and the IRS Withholding Estimator. 

  • • Step 1. Employee’s personal information and their anticipated filing status for determination of standard deduction and to compute tax rates & withholding.
  • • Step 2. Applies to an employee who has: (1) more than one job at the same time, or (2) are married filing jointly and both the employee and his/her spouse work.
  • • Step 3. Provides instructions for determining the amount of the child tax credit and the credit for other dependents that you may be able to claim when you file your tax return.
  • • Step 4. Employee indicates: (1) other estimated income for the year (e.g., interest, dividends and retirement income), (2) deductions other than the standard deductions to reduce withholding & (3) any additional tax the employee wants withheld for each pay period.
  • • Step 5. Employee signature and date signed under penalties of perjury.

Resources:

https://www.irs.gov/newsroom/faqs-on-the-draft-2020-form-w-4

https://apps.irs.gov/app/tax-withholding-estimator 

https://sqps.onstreamsecure.com/origin/irsvideoportal/prod/2717_slides_1.pdf

https://www.irsvideos.gov/Webinars/UnderstandingThe2020FormW4AndHowToUseItToCalculateWithholding

Attention Employees: The IRS has just launched a new and improved Tax Withholding Estimator, designed to help workers target the refund they want by having the right amount of federal income tax taken out of their pay.

https://www.irs.gov/individuals/tax-withholding-estimator

If you have any questions, please click on the links provided, you may also contact MMC Payroll Team at 800-899-6624.

The MMC Payroll Team cannot provide tax advice, please speak to your tax advisor if you are unsure of your exemptions or filing status. 

Request A Free Consultation