The only two steps required for all employees are Step 1, where you enter personal information like your name and filing status, and Step 5, where you sign the form.

When Must Form W-4 be completed?

A Form W-4 claiming exemption from withholding is valid for only the calendar year in which it’s furnished to the employer. To continue to be exempt from withholding in the next year, an employee must give you a new Form W-4 claiming exempt status by February 15 of that year.

Why is the 2020 W-4 different?

The thing that really separates the 2020 W-4 form from the 2019 and earlier forms is the elimination of withholding allowances. Instead of claiming withholding allowances to reduce federal income tax withholding, employees can now claim dependents or other deductions on the form.

What do you need to know about the 2020 Form W-4?

The old Form W-4 accounted for multiple jobs using detailed instructions and worksheets that many employees may have overlooked. Step 2 of the redesigned Form W-4 lists three different options you should choose from to make the necessary withholding adjustments. Note that, to be accurate, you should furnish a 2020 Form W-4 for all of these jobs.

Do you have to fill out Form W-4 for employees?

That way, you can guide your workers through the process—and make sure you have the information you need to accurately calculate their tax withholdings. All employees must complete steps 1 and 5 on Form W-4. Steps 2, 3, and 4 only need to be filled out if they apply to the employee.

Why was the title of Form W-4 changed?

The first is the form’s title. Form W-4 used to be titled “Employee’s Withholding Allowance Certificate.” But in 2020, that title was shortened to “Employee’s Withholding Certificate.” And that title shortening is a result of the other key change to Form W-4.

How does a W-4 withholding certificate work?

The W-4 Employee’s Withholding Certificate is a tax form (available on irs.gov) that allows employees to elect how much income tax is withheld from their paychecks. Here’s how it works: an employer gives Form W-4 to the employee.