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