The IRS has launched a new online assistant designed to help employers, especially small businesses, easily determine the right amount of federal income tax to withhold from their workers’ pay. Known as the Income Tax Withholding Assistant for Employers, the new spreadsheet-based tool was designed to help employers easily transition to the redesigned withholding system (no longer based on withholding allowances), which goes into effect on January 1. It does this by helping them easily implement new income-tax withholding requests from employees who fill out the completely redesigned 2020 Form W-4, Employee’s Withholding Certificate. The tool can also help employers continue to properly withhold from employees who still have a withholding request on file using a past version of the W-4, which was based on withholding allowances. The tool is available on the IRS website.
IRS Launches Assistant to Help Small Businesses Withhold Tax
The IRS has launched a new online assistant designed to help employers, especially small businesses, easily determine the right amount of federal income tax to withhold from their workers’ pay. Known as the Income Tax Withholding Assistant for Employers, the new spreadsheet-based tool was designed to help employers easily transition to the redesigned withholding system (no longer based on withholding allowances), which goes into effect on January 1. It does this by helping them easily implement new income-tax withholding requests from employees who fill out the completely redesigned 2020 Form W-4, Employee’s Withholding Certificate. The tool can also help employers continue to properly withhold from employees who still have a withholding request on file using a past version of the W-4, which was based on withholding allowances. The tool is available on the IRS website.
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