TRAXPayrollAnnouncements Release NotesW-4 Updates for 2020 (12/16/2019)

W-4 Updates for 2020 (12/16/2019)

Please note: The information included in this release note is accurate as of December 2019. For the most up to date information on this product feature, please refer to the corresponding links provided within this guide.

The IRS has released a new W-4 form for 2020 that will become effective on January 1, 2020. This update will affect any new employees with a hire date of January 1st and beyond. It will also affect any of your existing employees who choose to change their W-4 elections after January 1. In contrast, if any existing employee doesn’t want to change their W-4 elections they are not required to update using the new form. 

To account for these changes, we have made updates to TRAXPayroll to help you stay compliant with these updates. Below is a summary of those changes as they apply to TRAXPayroll users. 

  • The pay stubs and paper checks will show total dollar amount instead of filing status to account for either withholding method being used

  • Users will be able to modify the Federal Withholding amount per-employee while running payroll using both the 2020 specifications and the pre-2020 specifications depending on what the employee is using

  • The Payroll Register and Payroll Register with Hours reports will be updated for employees using the new W-4 format to show their status along with the total dollar amount for withholdings

  • We will be showing both the 2020 and pre-2020 Federal Withholding changes in Remote Link for review

  • The Sample Tax Calculator will now default to using the 2020 version of the W-4 fields but there will be the option to switch it back to pre-2020 version if needed