Q6: Our employees can submit or change their Forms W-4 on line. What happens if I do not lock in the employee's withholding as directed?Ī5: Those employers who do not follow the IRS lock-in instructions will be liable for paying the additional amount of tax that should have been withheld. Q5: I have been directed to lock in an employee's withholding. Q4: As an employer who has received a modification letter (letter 2808C) from the WHC program, do I wait for another 60 days to change the marital status per the modification letter?Ī4: No, the modification becomes effective immediately upon receipt of the letter 2808C. If the employee's request is approved, the IRS will notify you to withhold at a specific rate. Encourage the employee to contact the IRS to request a modification to the lock-in. If the revised Form W-4 results in less withholding, you must withhold based on the lock-in letter. Q3: As an employer, after I lock in withholding on an employee based on a lock-in letter from the IRS, what do I do if I receive a revised Form W-4 from the employee?Ī3: If the revised Form W-4 received from the employee results in MORE withholding than specified in the lock-in letter, you must honor the Form W-4. Employer’s Withholding Worksheet for Percentage Method Tables for Automated Payroll Systems for additional information. To do this, input values to Step 4(a) and 4(b) as follows: 4(a) – 12,900 for MFJ or 8,600 for all others and 4(b) – Number of allowances, as specified in WHC Letter multiplied by 4,300. Or, rather than having two separate systems, you may prefer to use a single system based on the redesigned Form W-4. You can apply these tables separately to systems for new and old lock-ins. The same set of withholding tables will be used for both withholding calculations.
#Change w 4 form software
Q2: Does this mean our software will need two systems-one for lock-ins before 2020 and another for lock-ins after 2019?Ī2: Not necessarily. Once a lock-in rate is effective, an employer cannot decrease withholding unless approved by the IRS. You will be required to take this action no sooner than 60 calendar days after the date of the lock-in letter. You must withhold tax in accordance with the lock-in letter as of the date specified in the lock-in letter, unless otherwise notified by the IRS.
The employee must send the Form W-4 and statement directly to the IRS office designated on the lock-in letter.
The employee will be given a period of time before the lock-in rate is effective to submit for approval to the IRS a new Form W-4 and a statement supporting the claims made on the Form W-4 that would decrease federal income tax withholding. However, if the employee should return to work within twelve (12) months, you should begin withholding income tax from the employee's wages based on the withholding arrangement stated in this letter. If the employee NO LONGER WORKS for you, NO ACTION IS REQUIRED. If the employee still works for you, you must furnish the employee copy to the employee. You will also receive a copy for the employee that identifies the withholding arrangement permitted and the process by which the employee can provide additional information to the IRS for purposes of determining the appropriate withholding arrangement. 2019 Prior Form W-4, Employee's Withholding CertificateĢ020 Form W-4, Employee's Withholding Certificate Q1: If the IRS determines that an employee does not have enough federal income tax withheld, what will an employer be asked to do?Ī1: If the IRS determines that an employee does not have enough withholding, we will notify you to increase the amount of withholding tax by issuing a "lock-in" letter that specifies the withholding arrangement permitted for the employee.2020 Form W-4, Employee's Withholding Certificate.
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