Heads Up: New and potentially more complex W-4 form due by 2020.
This form will seek to eliminate over and underpayments. To do so it may ask for significantly more information from employees, including:
- Nonwage income, such as interest and dividends
- Itemized and other deductions
- Income tax credits expected for the tax year
- For employees with multiple jobs, total annual taxable wages for all lower paying jobs in the household
For now, this is still being reviewed with the next draft due around May 2019. The goal is to have an updated W-4 for the 2020 tax season.
The new form referenced up to 12 other IRS publications to fill it out. It was so complex and different from the previous W-4 form that Ernst & Young worried employees would struggle to fill it out correctly and employers may need to offer training beforehand.
This is a very good reason for payroll users who have not upgraded from older versions to move to Payroll 2.x ASAP since it’s unlikely the older Sage payroll will be updated to manage a more complex federal tax computation.
Sage 100 Payroll 2.19.2 was released on April 2,