Update: Mandatory New Hire Form Effective Jan 1

Bringing on new employees to a team is very exciting. The not-yet-tapped potential and mutual goal setting between employer and employee make the first days of a new job both hectic and interesting. Part of the shuffle almost always includes paperwork.

As of January 1, 2020, employers need to utilize the new W-4 form for processing payroll withholdings for employees. This is the first update to the form since 1987. Unlike the current form, the 2020 version walks employees through how to calculate exemptions and deductions (rather than making the calculation instructions separate). Additional guidance from the IRS is available via its online withholding estimator tool.

Employers should use the new form for employees starting on or later than January 1, 2020 – however, current employees do not need to redo their forms. I recommend that employers take the time to become acclimated to the new form (in anticipation of questions from employees) and update onboarding policies accordingly. Feel free to reach out to me to discuss best practices for rolling out the new form and addressing potential legal questions.