Entering the new W4 Withholdings

As of Jan 1, 2020, IRS form W4 form has changed to more accurately determine what to withhold for federal income tax.

What is the essential change?

The W4 worksheet has changed. There are additional variables to be entered for Federal Income Tax on the Employee Withholdings screen (explained below).

Do I have to change to the new W4s?

No. Per the IRS, employees are not required to fill out a new W4. Withholdings may be based on their most recent W4 from 2019 or prior.

Getting There

At the main screen of Employee Data & Payroll Look Up an Employee and click the Withholdings icon (building) on the toolbar.

toolbar-withholdings

Enter the new W4 values

  1. Either dbl-click Federal Income Tax,  or click once on the name and then click the Variables button.
  2. Using the values from the new 2020 W4 (download form), fill in the items highlighted in yellow (the others are legacy items). If other items have any values in them, you may leave them in there.
  3. Click Save > Exit.

Note: If both 2020 and 2019 are blank we will default to withholding at the highest possible rate (single, no exemptions).

 

FrmWithholdingBox

FrmWithholdingEditor