The W-4 form used to be a simple half-page. Now it looks like a tax return … and employees have to do math! Even after a year with this format, the new withholding rules still spark tons of questions from both employees and Payroll/HR professionals. Employees are 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.
Is your W-4 process in compliance? 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.