On August 8, 2019, the IRS released the second draft of the 2020 Form W-4, Employee’s Withholding Certificate. The second draft is available for viewing here.

The computation of withholding has not changed from the first draft.

There are a couple of substantive changes from the first draft:

Step 4(d) (exempt) of the first draft has been removed with instructions to write in “exempt” below 4(c)

The language in the instructions has been added, titled “Your Privacy”

Only new employees hired in 2020, or current employees that want to adjust their pay dated 1/1/2020 or later must complete the new form

Thank you for choosing Paylocity as your payroll tax partner.

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.