Form W-4 Compliance for 2020 and Beyond

The Employee Withholding Certificate, commonly known as the Form W-4, is an IRS form used by an employer to withhold the correct federal income tax from an employee’s pay. In this practical webinar, you will learn about the changes to withholding computations for the 2020 W-4. 

Among other things, you will explore the various methods used to compute withholding and the new IRS Publication 15-T – Federal Income Tax Withholding Methods. You will also receive detailed information that payroll professionals need to know now in order to remain compliant in 2020.The IRS issued a new Form W-4 for 2020. The new form must be used for all employees who receive their first pay check after December 31, 2019 and any existing employees who change their withholding amount after December 31, 2019.

This webinar will cover the changes to the 2020 W-4, who must provide the employer with the 2020 Form, the method used to compute withholding, the new IRS Publication 15-T – Federal Income Tax Withholding Methods and other information payroll professionals need to know now to stay in compliance in 2020. 

• The legal requirement that the employer withhold income tax from employee compensation
• Information provided on the 2020-W-4 and how it is used
• 2020-W-4 line by line
• How to compute withholding for the 2020-W-4 and year W-4 Forms still in effect
• The new withholding tables – How and when to use them. Example computations
• The special instructions for non-resident aliens
• State withholding certificates
• When employees are required to revise W-4 Forms  
• Requirements for electronic W-4 Forms
• Penalties for failing to withhold or deposit tax and reporting errors
• Record retention requirements – how long must an employer keep the forms

The new form does not use withholding allowances, so the method for computing withholding has changed. Since existing employees who do not want to change their withholding amount may leave prior Forms W-4 – Withholding Allowance Certificate in effect indefinitely, payroll professionals will have to know how use both withholding calculation methods.

Learning Objectives: 

• Understand the employer’s legal obligation to withhold tax
• Know which employees are required to use the 2020 W-4
• Know how to calculate withholding for 2020 using both 2020 and prior year W-4 Form information
• Know what must or must not be included on each line of Form W-4 and how to identify invalid Forms
• Know how to deal with special problems and situations related to Form W-4 such as non-resident alien forms, lock in letters, and invalid and questionable employee submissions
• Be aware of the penalties for non-compliance
• Know the record retention requirements

• Payroll Professional
• Public Accountants
• Tax Compliance Officers
• Enrolled Agents
• Employee Benefits Administrators
• Officers and Managers with Payroll or Tax Compliance Oversight
• Company / Business Owners
• Managers/ Supervisors
• Public Agency Managers
• Audit and Compliance Personnel

Patrick Haggerty is a tax practitioner, author, and educator. His work experience includes non-profit organization management, banking, manufacturing accounting, and tax practice. He began teaching accounting at the college level in 1988. He is licensed as an Enrolled Agent by the U. S. Treasury to represent taxpayers at all administrative levels of the IRS and is a Certified Management Accountant. He has written numerous articles and a monthly question and answer column for payroll publications. In addition, he regularly develops and presents webinars and presentations on a variety of topics including Payroll tax issues, FLSA compliance, information returns, and accounting.