October 12, 2018 – IRS has released a new draft of the 2019 Form W-4 (Employee’s Withholding Allowance Certificate) The form has not changed from 2018 with the exception of updates to the wage brackets used on the “Personal Allowance”, “Deductions, Adjustments and Additional Income” and “Two Earner / Multiple Jobs” Worksheets.
In June, the IRS released a draft of the proposed 2019 Federal Form W-4. This was in response to major changes in Tax Reform passed in December 2017. Recently the IRS has delayed those plans until 2020 in order to further evaluate comments and responses from the business communities regarding the proposed changes.
What to Expect
Once the 2019 draft is finalized, employers should begin using the 2019 form for any newly hired employees starting after January 1, 2019 and for any employees claiming exempt or any other employees who will need to update their Forms W-4 in the coming year.
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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.