On November 26, 2018, the IRS released Notice 2018-92 regarding interim guidance on Income tax withholding and Form W-4 effective January 1, 2019. Due to the Tax Cuts and Jobs Act (TCJA), significant changes would need to be made by the IRS, Employers, Employees and software companies. These changes resulted in deferring major revisions to Form W-4 until 2020.
What To Expect
The IRS Form W-4 for 2019 will be similar to 2018. The original change required employees to furnish an updated Form W-4 within 10 days or by December 1 of the current year if they had changes related to TCJA changes. The interim Notice 2018-92 states employees now will not be required to update the Form W-4 until they have a better understanding of how the TCJA changes affect their personal situation. It is still recommended, however, that employee re-examine their withholding allowances.
Employers are to continue the practice of withholding Single and zero withholding allowances for employees that fail to supply a Form W-4. Employees may use the new IRS Online Withholding Calculator or Publication 505 Alternative Withholding Procedures to assist in determining the amount of allowances to claim, and to calculate any additional money they need withheld from their pay.