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New Tax Withholding Tool for Employers

The IRS has unveiled an “Income Tax Withholding Assistant for Employers,” a spreadsheet-based tool designed to help employers easily transition to the redesigned withholding system.

This tool helps facilitate withholding requests from employees who fill out the redesigned Form W-4 for 2020, but it also works for employees whose withholding is based on a prior version of the form. To use the tool, the employer indicates its pay period frequency (weekly, biweekly, monthly, etc.) and enters key information from the employee’s Form W-4.

After saving a customized copy of the file, the employer can input the employee’s gross wage or salary amount for the pay period and the tool will automatically display the correct amount of federal income tax to withhold.

The tool can be accessed on the IRS website here.

As always, please reach out to your Whalen advisor for assistance if you have any questions on this tool or the withholding system.

 

SOURCES:
Thomson Reuters
IRS.gov

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