2020 W4 Payroll File Setup

[Teresa10]

I am struggling to interpret my clients W4 forms to setup payroll employee files.  How do I know how to convert to a deduction number, when the new forms is a dollar figure, or nothing at all?

No one seems to fully understand the "easier" 2020 W4.

[qbteachmt]

I recommend my clients provide new W4 to their staff, since it is different. I already have them include a reminder in payroll about this time of year, for those who are under- or over-withheld, to remind them to submit a new W4 to make an adjustment, anyway.

[hillsboro15269]

Yes, those new W-4s are a bear. The software allows you to use the "old" system, for employees who haven't filled a new W-4. But I'm using the new W-4 to drum up business. I've posted on social media about the new forms, how they're way different but ultimately better, and offering free W-4s with a tax return to returning clients, and for people who are not clients, I'm charging $10 for the first and $5 for each thereafter. Then just use the IRS calculator. If your state has a W-4 (ours does) throw that one in, too. People have questions -- that's good for us professionals. We have answers!

[nickeypoo72]

That's because the program isn't properly updated to reflect all the different filing scenarios from the new 2020 Form W-4 .  I am hoping that their programmers are working on a solution.  For now, you can only choose single or married.  😞 

[Teresa10]

This only works if the employees actually fill out the form.  Most of the employees read it, and leave it completely blank because they do not understand or know the information.