Even after two years of this new W-4 format, the new withholding rules are still sparking tons of questions and head scratching from both employees and Payroll/HR professionals. Employees, who may not have had to complete a new W-4 in years, are now making costly mistakes and they’re blaming you.
This revamped W-4 is a big change … no pay period withholding and no withholding allowances for employees to claim. And the IRS just keeps piling it on. To deal with the two withholding systems—one based on the old withholding allowances and the other based on the new W-4 and no withholding allowances—the IRS has created a “computational bridge” that will complicate your process further upfront, but which may ease your compliance burdens down the line.
Is your W-4 process in compliance? What other withholding tasks do you need to clean up before the end of 2021? Discover the new rules for employee withholding and get all of your questions answered. And remember, even if you farm out payroll to a third party, the IRS will always hold YOU responsible for any mistakes—so it's your job to guarantee compliance.