Course Description

In 2021, The IRS significantly changed one of the simplest in all of payroll – the W4. The W4 is used by employees to tell employers how much FIT and SIT to withhold from their paychecks. The old form simply stated marital status and a number of exemptions claimed. There was also a method to request additional withholding and/or claim exempt if desired.

The newly designed W4 has 5 different, multi-part sections that go from simple to very complex. The idea is to have employees with multiple jobs, and/or significant other incomes anticipated in the year, to have more withholding taken from their paychecks. What the IRS is trying to prevent is taxpayers from owing significant amounts at the end of a tax year.

Areas Covered:-

• Recent changes and explanations
  • From 2021 through 2023
  • Systematic and sectional changes
• The W4 section by Section
  • Section 1: employee info
  • Section 2: Multiple Jobs or Spouse Works
  • Section 3: Employee Deductions
  • Section 4: Other income
  • Section 5: Employee and Employer Signature and Info
• Specifics:
  • Easy ways out – complete sections 1 and 5 only. Or certify exempt status.
  • Section 2- How to determine if this is right for your employee. When to advise them to get a tax consultant.
  • Section 4 – for high-income earners, especially those with large sources of untaxed or undertaxed income. When to advise employees to seek professional help
  • What should employees be advised on, and what should not be?
  • How can compliance with IRS regulations on electronic means of collecting this information be ensured? 
  • FAQ on the W4
  • How do you sleep at night knowing you have done all you can for your valued workers?

Why Should You Attend?

This new design has caused much confusion for employers and employees alike. Although it is not the employer’s responsibility to complete the form for employees (there are default entries for incomplete or missing W4s), a lot of payroll and HR departments are inundated with questions from workers. Further, the payroll systems need to incorporate all the new information given to them by workers. Employers are also mandated to ensure employees have access to tables and other information so they can properly complete the W4.

• What sections employees are required to complete, and which are optional?
• How to anticipate questions for each of the sections. Where to direct employees to find the answers they need. When to refer them to professionals.
• How to explain in plain language the nature and purpose of each section. How to explain the tables used, and how each computation will affect employee withholding.
• What are the “easy ways out” for employees who do not want to spend a lot of time calculating withholdings? When it is wise for an employee to take an easy way out, and when it isn’t.
• Options for intra-year adjustments to the W4.
•  Requirements for employer-created electronic W4 info entry.

Who will Benefit?

Payroll and HR staff and Managers.