IMPORTANT NOTICE: IRS HAS REVISED FORM W-4 EFFECTIVE JANUARY 1, 2020

Posted December 10, 2019 in Employee tax, Tax Law.

The Internal Revenue Services (IRS) has released a redesigned 2020 Form W-4 applicable January 1, 2020 and later.

The IRS provides a 2020 Form W-4 and Instructions and the following general guidance:

  • Current employees DO NOT have to submit a new 2020 Form W-4.
    • The employees’ most currently submitted Form W-4 prior to 2020 will remain to be used for the withholding computation which includes withholding allowances.
  • New employees hired January 1, 2020 or later must use the redesigned 2020 Form W-4.
  • Withholding exemption is still available. For employees claiming to be exempt from withholding in 2019, the 2019 exemption is set to expire on February 17, 2020 and the redesigned 2020 Form W-4 must be submitted to recertify the withholding exemption for 2020.
  • Employees may consider Form W-4 adjustments throughout the year and review paychecks to ensure your withholding needs. The IRS provides and encourages taxpayers to use a withholding estimator, to help determine your W-4 tax information.
  • Employees with foreign status (Nonresident aliens, NRA) withholdings will be adjusted as indicated by the IRS. Please refer to the 2020 Publication 15-T and Notice 1392. The GLACIER online application record will continue to be required to be completed.

What changes are made by the IRS on this redesigned Form W-4?

Due to the Tax Cuts and Jobs Act of 2017, individual taxpayers can no longer claim the personal or dependency exemptions. The 2020 Form W-4 does not have the withholding allowances for computing withholding amounts. Optional adjustments such as other income or deductions other than the basic standard deduction can be included.

When will the updates be effective?

The redesigned 2020 Form W-4 will be accepted and effective January 1, 2020 or later. If you wish to apply the revised 2020 Form W-4 adjustments, the IRS requires the use of the redesigned 2020 Form W-4 beginning January 1, 2020 or later.

Employees can continue to submit 2019 Form W-4 on the University CIS through December 31, 2019.

After a new valid Form W-4 is furnished, the employer is required to apply immediately. Submitting a 2020 Form W-4 will replace any prior year Form W-4, which then withholding allowances cannot be used and cannot be undone.

The IRS provides the following information:

IRS FAQ on 2020 Form W-4
IRS Withholding Estimator
2020 Form W-4 and Instructions
2020 Publication 15-T Draft

This page will continue to be updated as additional information becomes available.

Tax Services and Payroll Accounting Department cannot provide tax advice on completing Form W-4. Employees should consult their tax advisor and the appropriate tax authority resources for the most current forms and instructions.

(Updated 12/10/2019)

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Reminder: Moving Expenses Taxable

Posted September 7, 2018 in Tax Law and tagged .


As a reminder, all employee moving expenses reimbursed or paid by the University are taxable to the employee effective January 1, 2018 due to the passage of the Tax Cuts and Jobs Act on December 22, 2017.

Moving expenses reimbursed or paid will be considered wages for income and employment tax purposes. Reimbursements or payments for employee moving expenses must be reported as wages on Form W‐2 and all applicable withholding taxes will be withheld and reported.

Due to the reimbursement processing requirements, there may be a delay between the reimbursement payment and the tax withholding applied to the payment on the employee’s pay check.

If you have any questions or concerns, please contact Kelly Peterson, Associate Director, Tax Services and Payroll Accounting at Kelly.Peterson@admin.utah.edu or Scott Patten, Associate Director, Accounts Payable at Scott.Patten@admin.utah.edu.

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Tax Law Update: Moving Expenses now Taxable

Posted January 12, 2018 in Tax Law and tagged .

All employee moving expenses reimbursed or paid by the University are now taxable to the employee, as of January 1, 2018 due to the passage of the Tax Cuts and Jobs Act on December 22, 2017.

Moving expenses reimbursed or paid will be considered wages for income and employment tax purposes. Reimbursements or payments for employee moving expenses must be reported as wages on Form W‐2 and all applicable withholding taxes will be withheld and reported.

If you have any questions or concerns, please contact Kelly Peterson, Associate Director, Tax Services and Payroll Accounting at Kelly.Peterson@admin.utah.edu.

Please be sure to visit the Household Moves page for more information.

 

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