Are You Using The Correct W-4 Form?
While the year is still young, now is a great time to ensure that you have completed W-4 Forms for all your employees. Although current employees should not be required to fill out a new W-4, it’s important to make sure to use the most current revision of Form W-4 is used for any employee changes or new hires that are brought into your business. While there isn’t a big difference between 2020 and 2021, we always like to remind employers of the importance of staying current with these forms.
When Was Form W-4 Last Updated?
The W-4 was completely redesigned in 2020 to be compatible with the Tax Cuts and Jobs Acts, which was passed in December 2017, creating the biggest changes to the W-4 since 1943. If used accurately, the 2021 W-4 is intended to help avoid large tax bills, as well as large refunds – money that could have been invested or spent on essential expenses throughout the year.
To make sure you have the most current version of Form W-4, check out the document here and download it if necessary.
By Dee Gray, CPP (New Philadelphia office)