© 2020 American Payroll Institute, Inc. IRS Releases Publication 15-T T15-T, he IRS released the final version of the 2020 Publication Federal Income Tax Withholding Methods, which is a brand new publication that tells employers, payroll software providers, and payroll service providers how to withhold federal income tax on wages paid beginning January 1, 2020. Publication 15-T was created to explain withholding using the Form W-4, Employee’s Withholding Certificate, which was redesigned for 2020 after the Tax Cuts and Jobs Act (TCJA) eliminated personal withholding allowances. The IRS released the 2020 Form W-4 in early December (see PAYROLL CURRENTLY, Issue 12, Vol. 27, and page 14 of this issue). As a reminder, the IRS said current employees will not have to complete the 2020 W-4 unless they wish to make a change to the latest pre-2020 Form W-4 they have on file with their employer. Employees who are hired in 2020 or wish to revise their W-4 information after 2019 must use the 2020 Form W-4. Publication 15-T allows employers to compute withholding based on the information from the employee’s most recently submitted Form W-4, whether it is from 2020 or a previous year. Publication 15-T includes the 2020 Percentage Method and Wage Bracket Method withholding tables withholding adjustments for nonresident aliens and alternative methods for figuring withholding. The 2020 Publication 15-T and 2020 Form W-4 are available in the Resource Library on the APA website. Worksheets and withholding tables Because employers will now have to withhold income tax based on pre-2020 Forms W-4 and 2020 Forms W-4, which provide significantly different data, the IRS developed one set of withholding procedures and withholding tables to accommodate both versions of Forms W-4. The IRS removed the income tax withholding tables from Publication 15, Circular E, Employer’s Tax Guide, and created new withholding procedures and tables that are contained in Publication 15-T. Inside this issue... IRS Releases 2020 Publications 15 (Circular E), 15-A, and 15-B. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Business Standard Mileage Rate Decreases to 57.5 Cents in 2020. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 DOL Finalizes Rule for Regular Rate Under FLSA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 President Trump Signs Appropriations Act for FY 2020. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 IRS Releases Tax Calendars for 2020. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 IRS Announces Quarterly Interest Rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Submit Your Questions for Federal Agencies to Answer at Congress 2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 OCSE Proposes Revisions to IWO Form, Instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 IRS Releases 2019 ACA Reporting Forms, Instructions, E-Filing Guides. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Publication 5223 Updates ACA Substitute Forms Requirements for 2019. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 5th Circuit Affirms ACA’s Individual Mandate Is Unconstitutional . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Wage Amount for Government Control Employee Increases to $160,100. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 OCSE Issues Revised NMSN Part A Form. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 IRS Determines Cash Reimbursement for Malfunctioning Transit Pass Not a Fringe Benefit, Amount Should Be Included in Income. . 9 States React and Adjust to Federal 2020 Form W-4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Definition of Full-Time Life Insurance Salesman May Broaden. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Withholding Scenarios Using Publication 15-T . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 2020 Form W-4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Worksheet 1 From Publication 15-T . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 2020 Percentage Method Tables for Automated Payroll Systems. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 State and Local News. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 January 10, 2020 Volume 28 Issue 1
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