November 28, 2018
IRS regulations require employers to remind their employees to file an amended Form W-4 if their filing status, withholding allowances or exemption status has changed since the last filing of their W-4. This notice must be provided by Dec. 1 each year.
A W-4 claiming exemption on Line 7 is valid for only one year. A new W-4 must be filed each year by Feb. 15 for any employees claiming exemption from withholding. If a new W-4 is not filed by Feb. 15, employers must begin withholding at the single rate with no allowances for that employee.
iSolved’s Tax Updates Wizard in Employee Self Service can be used to allow employees to complete new federal, state and local withholding forms electronically. If you are not already using it, HKP can configure the Tax Updates Wizard workflow for your organization for a one-time setup charge of $150. Contact your client services representative for more information.
The IRS released its second draft of the 2019 Form W-4 in October but is yet to release the final form. Broader changes are expected on the 2020 Form W-4 to facilitate more accurate withholding following the Tax Cuts and Jobs Act. HKP will continue to provide you with important W-4 news as it occurs.