2019 W-4 Update And Future Changes
2019 W-4 Update And Future Changes

2019 W-4 Update And Future Changes

2019 W-4 Update

Now that Tax Day has come and gone, you can breathe a sigh of relief. But don’t get too comfortable, big changes are around the corner.

The IRS is preparing to release a new W-4 form that will ensure the amount held back for taxes each paycheck is more accurate. That means come April 2020, taxpayers should not owe money or receive a refund.

What to expect

Last summer, the IRS shared a draft of the new W-4 form seeking feedback from payroll providers and tax prep companies. The biggest change in the draft form is that taxpayers will no longer claim allowances based on exemptions. Instead, workers will input annual dollar amounts for:

  • Nonwage income like interest and dividends
  • Itemized and other deductions
  • Income tax credits
  • Employees with multiple jobs: total annual taxable wages for all lower paying jobs in the home

Next steps

Look for the IRS to share another draft of the new W-4 by May 31, 2019 and ask for taxpayer feedback. Once the comment period ends, the IRS will post an updated draft sometime later this summer.

The IRS will release the final W-4 form at the end of 2019, so taxpayers can prepare for the 2020 tax filing.


payroll software

More to Discover

Webinar: EEO-1 Reporting FAQs

Webinar: EEO-1 Reporting FAQs

Based upon the questions you asked we came up with a list of Frequently Asked Questions to help guide you through the changes of the Equal Employment Opportunity Commission (EEOC) to collect 2018 employee pay data and hours worked by Sept. 30, 2019. The additional data required by the new ruling and expanded EEO-1 form is very significant. Is your HR team ready? Watch as we discuss the answers to your questions and how Paycor can help.

Case Study: Camp Woof

Case Study: Camp Woof

Years of manually entering payroll combined with the frustration of paying for every custom report finally took its toll on Camp Woof administrators and led them to seek an automated time and payroll product with a robust reporting feature. “My employees now have easy access online to get their paystubs and information. Payroll is on time and the only mistakes are ones that I make and those are easily fixed. The reporting is great.”—Pete Grossman, Managing Member, Camp Woof Discover how Paycor’s Human Capital Management solution helped this pet paradise in Atlanta streamline payroll, giving the owner and managers time to focus on what matters most—the animals.

Case Study: Humane Society of Boulder Valley

Case Study: Humane Society of Boulder Valley

After years of dealing with cumbersome and unreliable HR software, the Humane Society of Boulder Valley turned to Paycor for a modern, efficient Human Capital Management solution. “Paycor provided improved functionality and additional services for the same price we were paying with our old vendor. [We received] a better value and a more intuitive product.” —Jennifer Schwartz, Director of Human Resources, Humane Society of Boulder Valley Read more about HSBV’s experience using Paycor and how our solutions can meet the needs of other nonprofit organizations.

Pay Equity and State-by-State Laws

Pay Equity and State-by-State Laws

When you’re managing payroll, it’s tough enough keeping track of – and maintaining compliance with – federal and a single state’s laws. But organizations that have operations in more than one state often experience challenges when it comes to tracking the always-changing requirements of pay equity laws. Complicating matters even further, some states such as California and New York, have separate laws governing cities and counties. We’ve created this handy chart to help you get a quick view of each state’s laws. State-by-State Pay Equity Laws State Law/Citation Covered Employes Provisions Alabama None None None Alaska Employment Discrimination Act Alaska Stat. Ann. § 18.80.220(a)(5). Private companies and Public employers Employers can’t...