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Paychex, Inc., a provider of solutions for human resources, payroll, benefits, and insurance services, has updated its systems to accommodate the new Form W-4 issued late yesterday by the IRS, while continuing to support calculation methods of the previous W-4 for its customers. All new employees hired as of January 1, 2020 must complete the new Form W-4, as well as any current employees who wish to make withholding adjustments.
“Throughout this process, which began with the passage of the Tax Cuts and Jobs Act of 2017, Paychex has actively engaged with the IRS, providing feedback to the draft versions of the Form W-4,” said Frank Fiorille, Paychex vice president of Risk, Compliance, and Data Analytics. “We’re proud of the leadership role we’ve taken in the payroll industry, working with the IRS to address the areas of greatest importance, communicating with our customers about this impactful change, and quickly updating our systems to support payroll calculations based on both the new W-4 and the previous version.”
The IRS has updated the form to better reflect the current tax code established under the Tax Cuts and Jobs Act of 2017. Key changes include the elimination of withholding allowances and the ability for taxpayers to have more tax withheld to address the concerns of those who had to unexpectedly pay tax when filing in the years following the tax reform legislation.
Over the past several months, Paychex has provided updates to its customers to support them through this change, including informational resources and links to the draft versions of the updated form, along with withholding calculators. With the official release of the new W-4, Paychex customers have seamless access to the updated W-4 for new employees, as well as employees who choose to make withholding adjustments.
Visit Paychex WORX for an overview of the new Form W-4 and the considerations to keep in mind as the form rolls out next year. As part of the new W-4, the IRS has provided a worksheet to guide taxpayers through the completion of the new form available at www.irs.gov/pub/irs-pdf/fw4.pdf.