When the Tax Cuts and Jobs Act (TCJA) was signed into law in December 2017, sweeping changes to Form W-4 became a matter of “when,” not “if.” Those changes—arguably the biggest since the form debuted in 1943—is finally materializing for the 2020 tax year, after a one-year implementation delay prompted by feedback from payroll and tax communities.
The impact of the COVID-19 on the global economy has been vast. Many Employers have needed to conduct layoffs, furloughs and many employees have needed to use the Government relief like the Family First Coronavirus Response Act (FFCRA) and the CARES Act. And more employees still have needed to look for new jobs.
For those Employers hiring and for employees getting new jobs or being hired back, they have a new opportunity to communicate the changes in the new W-4 form. If you had not communicated the changes in January 2020, you now have the ability to ensure you communicate the changes to the W-4 form as part of your onboarding process. This training will prepare Employers to have an onboarding process that communicates the changes to the W-4 for new employees and current employees.
