The Internal Revenue Service (IRS) has released an updated version of its W-4 form. This form should be used by all new hires, and employees who wish to amend their withholding in 2020.
This new form does not invalidate prior versions, and employers are not expected to replace prior W-4 forms with the new 2020 version.
The new form no longer uses allowances tied to personal exemptions. Due to changes in law, employees do not claim personal or dependency exemptions. The new form asks employees to declare multiple sources of income, and uses a 5 step process. Only steps 1 (where the employee enters personal information) and 5 (signature) are required. Steps 2-4, while not required, will assist the employee with a more accurate withholding amount. Employees can also use the Tax Withholding Estimator available at www.irs.gov/W4app to provide maximum accuracy.
If a new employees does not submit a W-4 they will be treated as a single filer with no other adjustments.
Employee and employer FAQs are attached below. Contact your NEEBCo representative with questions.