Workforce Tip of the Week, sponsored by Spectrum Employee Services: Are you ready for a new tax form?

     

    The federal government has proposed significant changes to the form W-4. In the latest draft, the proposed changes eliminate the use of allowances and add a new step for multi-job households—which means employees in a multi-job household will need to estimate their withholding, provide their employer with household income information, or check a box to opt for a higher withholding. These changes have not received final approval, but payroll teams should create a plan to prepare for them, including:

    • Building a comprehensive employee communications plan to help them understand the new form and how it may impact them
    • Creating a guide for new hires to help them complete the form (without providing tax advice)
    • Ensuring your HR and payroll solutions are up to date and prepared to handle the new W-4 form

    Questions? The IRS has provided a FAQ. For advice on how to build and/or implement these programs, feel free to contact us.

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