As you know, form W-4 is filled out by employees to report their tax situations to the employer. The IRS changes the structure of the form almost every year. New Form W-4 has a couple of differences when it’s compared to the previous one. Form W-4 new features are not actually something big deal but there are a couple of changes that may trouble you while filling it out. Here are all the changes that have been made on form W-4 this year:
- Different Versions of Form W-4
If you got your first paycheck this year, you are allowed to fill out the new form W-4. So this means that not all the employees have to fill out the new W-4 form, but everyone will have to use the new one after some time. Employers can not force their employees to fill out the new form W-4. Filing Form W-4 an employee is a must but employers are not even allowed to indicate that it’s mandatory.
- Changes on Layout
The steps for form W-4 form are changed. There are 5 main steps included in form W-4 filling instructions. This 5 step-instruction part now invades the whole page. Here are these 5 steps below:
- Enter Personal Information
- Multiple Jobs or Spouse Works
- Claim Dependents
- Other Adjustments ( this one is optional )
- Sign Here
- Updated Tax Witholding Tables
Form W-4 has two new withholding tables included inside it. These withholding tables are included below
- Percentage Method Tables for Automated Payroll Systems
- Wage Bracket Method Tables for Manual Payroll Systems
If you trouble while understanding these tables, you can click this link to see the IRS’s withholding worksheet. This one is included in Publication 15T under the Federal Income Tax Withholding Methods article.
- State Changes
If your state has its own form W-4, you may need to fill out your state’s form W-4 instead of the regular form W-4 of the federal government. They have almost the same structures in which you will not trouble yourself during filling.