Draft 2019 Form w-4 released on June 6th

 

On June 6, 2018, the IRS shared with the payroll community an early release version of the draft 2019 Form W-4. This new Form W-4 has been highly anticipated as it reflects the changes made with the passage of the Tax Cuts and Jobs Act of 2017.

 

 

Background

 

Tax reform suspended the use of personal exemptions through December 31, 2025. Because of this, the existing Form W-4 needed modification. The IRS’ goal with the revision of Form W-4 is to help employees get the most accurate withholding while limiting disruption to existing systems.

 

 

Employees will be strongly encouraged, but not required, to complete a new Form W-4. Therefore, employers will have to continue to use the old Form W-4 for those employees who do not complete a new Form W-4.

 

 

Copies of the Draft Form W-4 and Draft Form W-4 Instructions are available on the IRS Draft Forms page.

 

 

Development

Since employees will not be required to update their Form W-4, Paylocity will be supporting both versions of Form W-4 for our clients. We are already in the process of reviewing the draft and preparing our system to support these new requirements.

 

 

Final Form Version expected Later this Year

 

We anticipate that there may be additional drafts published prior to the final version of the 2019 Form W-4 being released later this year. We will continue to monitor for that final version and will provide more robust communication to our clients at that time. Thank you for choosing Paylocity as your Payroll Tax partner. Should you have any questions please contact your Paylocity Account Manager.

 

 

This information is provided as a courtesy, may change and is not intended as legal or tax guidance. Employers with questions or concerns outside the scope of a Payroll Service Provider are encouraged to seek the advice of a qualified CPA, Tax Attorney or Advisor.