The Internal Revenue Service (IRS) is making changes to the W-4 form in 2020. This form, which allows employers to calculate federal withholdings from employees’ pay, has been renamed the Employee’s Withholding Certificate beginning in January. The new form will have a five-step process for entering a person’s information, which the IRS hopes will add accuracy to the process.

The new W-4 will no longer have an exemption line. Instead, employees will be able to itemize their deductions on a worksheet and then enter the results on the form. Although boroughs do not file W-4s with the IRS, they should keep them on file for all current employees. The IRS suggests offering employees yearly opportunities to review their with­holding allowances and change them if necessary.

The five-step approach is as follows:

1.      Enter personal information

2.      Account for multiple jobs

3.      Claim dependents

4.      Other adjustments (optional)

5.      Sign and date


The new form is available here.