UHY Advisors: New form W-4 for 2020

20 January, 2020   -   By Luisa Almazan

This post is also available in: Français (French)

Under the Tax Cuts and Jobs Act, which took effect in 2018, personal exemptions were eliminated in the computation of individual income tax. Following this change, the IRS has released an updated form W-4, now called Employee’s Withholding Certificate. The IRS has issued key points which employers should note with this new release:

  • All new employees hired as of January 1, 2020, must complete a new form 
  • Current employees are not required to complete a new form but can choose to adjust their withholding based on the new form 
  • Any adjustments made after January 1, 2020, must be made using the new form
  • Employers can still compute withholding based on information from employees’ most recently submitted Form W-4 if employees choose not to adjust their withholding using the revised form

Due to the substantial changes made to the form, many employees may be uncertain about how to complete the new W-4. Employers should consider hosting training or educational sessions to assist employees in understanding the methodology behind the redesigned form. Employers should be careful not to give tax advice on withholding amounts for their employees during this process.

Additionally, many states currently rely on Form W-4 to calculate state income tax withholding for individuals. Due to the removal of personal exemptions, an item still widely used when calculating state income taxes, many states may be close to issuing their own redesigned Withholding Certificates. Employers must be prudent in checking the requirements for each state in which they have employees. 

 

For more information: Click here 

UHY Victor Response to the Spread of COVID-19

UHY Victor is taking action to maintain the health and welfare of our team, our clients and support communal efforts to respond to the coronavirus pandemic.

UHY Victor will remain open during this difficult period and client services will continue. We have implemented contingency plans which allow us to continue to operate as we all deal with the spreading pandemic.

In light of the present situation we have introduced the following measures:

  • Our staff and procedures have been structured so that our team can work remotely.
  • Our IT infrastructure and data are protected by cutting edge security systems.
  • To the extent possible, client meetings will be held through web meetings and other remote solutions.
  • Employees who experience the primary symptoms such as fever, cough and respiratory difficulties will work remotely until cleared.
  • Internally, we emphasize the importance of “social distancing”, and have enhanced our internal cleaning and disinfecting protocols.

UHY Victor will continue to monitor the changing situation and, will respond proactively as this major health challenge evolves.

We encourage all to stay informed and to visit the Public Health Agency of Canada COVID-19 site, and follow the guidelines set out by the government of Canada:

  • Now and always during cold and flu season, stay home if you are sick. Encourage those you know are sick to stay home until they no longer have symptoms.
  • Since respiratory viruses, such as the one that causes COVID-19, are spread through contact, change how you greet one another. Instead of a handshake, a kiss or a hug, a friendly wave or elbow bump is less likely to expose you to respiratory viruses.
  • Practice frequent hand hygiene and coughing and sneezing etiquette. Clean and disinfect frequently touched objects and surfaces, such as toys and door handles.

For more information on the guidelines of the Government of Canada on how to be prepared for COVID-19: Click here.

 
 
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