S05E06 - HR Rescue: IRS Debuts the 2020 Form W-4
The IRS released the completely redesigned calendar year 2020 Form W-4 on December 4, 2019. The form was overhauled to comply with the 2017 federal tax reform law, which suspends personal exemptions and withholding allowances through 2025. Employers use Form W-4 to calculate each employee's income tax withholding. On prior versions of the form an employee's income tax withholding was determined by the number of withholding allowances the employee indicated on the form and the employee's tax status - single, married filing jointly or married but withholding at the higher single rate. Beginning in 2020, an employee's income tax withholding is determined based on the employee's tax status and adjustments (allowances have been eliminated). The 2020 form also contains a new tax status: Head of Household.
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