The New W4 - How to Assist Employees with Proper Completion for Payroll Withholding Purposes

When the IRS overhauled Form W-4 in 2020, it replaced marital status and exemption counts with calculations for second jobs, working spouses and self-employment income. The IRS made the change because it saw a large rise in amounts individual taxpayers owed at year end.

The new design caught many workers and payroll managers off guard, turning simple instructions into a set of projections needed to work out federal and state income tax withholding. This 90-minute Form W-4 training shows you how to help employees complete the form correctly, step by step, using the worksheets, the withholding chart and the related forms.

• Explain how employees should complete each W-4 section for their circumstances
• Decide when additional withholding should and shouldn't apply
• Use the multiple jobs and deductions worksheets and the withholding chart
• Identify the payroll system changes the redesigned W-4 required
• Determine which existing workers should complete a new W-4
• Describe the risks of under-withholding federal and state income tax
• Know which states accept the federal W-4 and which use their own

The redesigned W-4, step by step

• Step 1: personal information, including alternate relationships
• Step 2: whether it applies, and when to use the estimator, the multiple jobs worksheet or checkbox c
• Step 3: claiming dependents and calculating deductions
• Step 4: other income and deductions, and voluntary additional withholding

Worksheets and calculations

• The multiple jobs worksheet, with an example
• The deductions worksheet, with an example
• The withholding calculation chart, with an example

Related forms and situations

• W-4P for pension and annuity payments
• W-4V voluntary withholding request
• Form 1040-ES
• IRS Notice 1392 for nonresident aliens
• States with their own W-4 version
• Whether employees need to complete a new W-4

Under-withholding can cause problems for both employees and employers, and payroll staff are often the first people employees ask for help. This session explains how each W-4 section should be completed for different personal situations and when extra withholding is or isn't appropriate.

You'll also learn which payroll system changes the form required, which current workers should file a new W-4, and which states accept the federal form. It suits payroll, HR, compensation, hiring, finance and executive staff.

• Payroll and HR Managers
• Compensation and Hiring Staff
• Finance and Operational Managers
• Executive Staff

Mark Schwartz is an employment tax specialist and has over 15 years of employment tax experience as an independent consultant and as a payroll tax auditor with the State of California. He has managed an audit caseload of 20 ongoing audits, from small home-based businesses to large multi-national corporations. He is expert at defining regulatory and statutory requirements from local, State and Federal government agencies; and helping the average businessperson understand what that mean to their business. He has processed weekly and bi-weekly payroll checks plus tax forms for businesses with hourly as well as exempt workers, multistate operations and a wide variety of benefits.

Mr. Schwartz provides consulting services encompassing payroll processing and payroll tax issues. These include payroll tax minimization, payroll tax compliance reviews, independent contractor studies, use of electronic transfers, deductions, benefits, etc. Mark has represented both clients and the State in front of the State Appeals Board. He understands the complexities of local wage laws, unemployment and disability claims, and other wage and benefit issues affecting your employees.

Mark prides himself on his outstanding customer service skills. He listens attentively to his clientele, helping them bridge the gap between the small business world and Government bureaucracy. He eagerly assists with clients needs, and feels that educating clients toward faster, accurate and more complete payroll processes provides the most value.

Mark is a participating member of the American Payroll Association. He earned his BA and MBA in Finance at Santa Clara University. He has held Certified Internal Auditor and Certified Investment and Derivatives Auditor Credentials. Mark is currently pursuing a Certified Payroll Fundamentals Credential with the American Payroll Association.