The Internal Revenue Service (IRS) has issued a draft of a new Form W-4, Employee's Withholding Allowance Certificate (IR-2019-98), that is designed to make accurate withholding easier for employees starting next year.
The revised form implements changes made following the 2017 Tax Cuts and Jobs Act, which made major revisions affecting taxpayer withholding. The redesigned Form W-4 no longer uses the concept of withholding allowances, which was previously tied to the amount of the personal exemption. Due to changes in the law, personal exemptions are currently not a central feature of the tax code.
The IRS and US Department of the Treasury collected extensive feedback over the past year while working closely with the payroll and tax community to develop a redesign that best serves taxpayers.
“The primary goals of the new design are to provide simplicity, accuracy and privacy for employees while minimizing burden for employers and payroll processors,” said IRS Commissioner Chuck Rettig in a prepared statement.