New W4 for 2020

[emarino]

I searched and didn't see any posts related to W4 for 2020. Will PowerChurch handle the updated form?

thanks,

Ed Marino

[Zorak]

PowerChurch doesn't have functionality to generate the W4 form.

[emarino]

Sorry, I should have been more clear. The W4 form is changing for 2020 and will no longer use allowances. But employees may opt to use the form they currently have on file. Based on the IRS FAQs, payroll systems should be able to accommodate both options. I'm wondering how PowerChurch will handle this.

[NeilZ]

Sorry, I should have been more clear. The W4 form is changing for 2020 and will no longer use allowances. But employees may opt to use the form they currently have on file. Based on the IRS FAQs, payroll systems should be able to accommodate both options. I'm wondering how PowerChurch will handle this.

As a long time user, I suspect that they will have something setup that will use the existing Payroll Item screen, but with additions for the W-4 changes. So if someone has an entry in the withholding box there shouldn't be an entry in the new W-4 boxes, and vice versa.

I really don't expect to see this available until the end of December.

[Zorak]

Thanks for pointing this out.

We will take a look, but likely there will be some more Payroll setup required.

As Ed mentioned, you will have to be able to process both employees with and without withholding allowances on the W4.

[NeilZ]

FWIW ... I didn't see where the IRS moved the form from 'draft' to final approved form.

[beas]

IRS released the new form on December 5.

[NeilZ]

IRS released the new form on December 5.

Figures ... didn't see the 'news' on the main page ... no matter ...

[Zorak]

The Maintenance Releases were published today for Versions 11.5 and 12. A new Knowledge Base article is in the works and the existing Federal Withholding tax table articles will be updated once the IRS publishes the final Publication 15-T.

Thanks emarino for raising the flag about this!

[Matt]

Based on the early release copies of the Percentage Table Methods that will appear in the final Publication 15-T there will be a total of 6 Federal Withholding Tables that will need to be set up in PowerChurch. 3 "Standard" tables will need to be set up for W-4s from 2019 or earlier, or if the W-4 is from 2020 or later and the box in step 2 of the W-4 is NOT checked (one for Married Filing Jointly, one for Single or Married Filing Separately, and one for Head of Household), and 3 "Form W-4, Step 2, Checkbox" tables will need to be set up for W-4's for 2020 or later and the box in step 2 of Form W-4 IS checked (one for Married Filing Jointly, one for Single or Married Filing Separately, and one for Head of Household). Please see the following link:

https://www.irs.gov/forms-pubs/2020-per ... ll-systems

The boxes checked in steps 1(c) and 2 on the new W-4 will determine which one of the six tables to use for each employee.

PC+ users need to wait until the final Publication 15-T is published by the IRS before making these changes in PowerChurch. I would also advise waiting until the new Knowledge Base article is published and the existing Federal Withholding tax table articles are updated as Zorak mentions above.

[Zorak]

Our documentation has officially been updated now:

https://www.powerchurch.com/support/pr - Shows the list of all federal and state tax table articles on the site, including the updated Federal and a new W4 article linked at the top.

[clararose577]

We are using a version older than 11.1, but thankfully all of our employees are using W4s prior to the 2020 version.

Until we can upgrade....for 2020 payroll, should we use the "2020 Percentage Method Tables for Automated Payroll Systems: with Forms W4 From 2019 or Earlier"? (From Pub. 15-T) and remove the exemption amounts from the "employee pay item" tabs? Do we need to make any other adjustments or will the system do that for us?

[NeilZ]

We are using a version older than 11.1, but thankfully all of our employees are using W4s prior to the 2020 version.

Until we can upgrade....for 2020 payroll, should we use the "2020 Percentage Method Tables for Automated Payroll Systems: with Forms W4 From 2019 or Earlier"? (From Pub. 15-T) and remove the exemption amounts from the "employee pay item" tabs? Do we need to make any other adjustments or will the system do that for us?

You should not need to redo the W4s unless the employee wants them redone, and you really don't have to change anything as far as the exemptions listed. The IRS has stated that, the new W4 is primarily for new employees.

My suggestion is to get an OK to do the upgrade, you're going to pay half price for a a lot of new features that will make you life easier.