2019 W4 Changes

tevers

Has anyone heard how Lawson and/or BSI will handle the new 2019 W4 changes? Especially with ESS

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sriman-shivakoti

What are the changes?

0904080826502268.xls

tevers

The IRS is making major changes to the W-4. Basically eliminating line 5 with is "the total number of allowances you can claim." Go onto the IRS website and type in 2019 W4 changes. They have come out with a draft in June.

sriman-shivakoti

I am sure they are keeping on top of it. You may want to open a regulatory enhancement.

unknown

I'm in IT and don't really follow the payroll side of things but started looking after you posted this.

Here is another site that helps a bit for those of us that hadn't heard about this yet..and haven't read anything on Infor or BSI sites.

https://www.paychex.com/articles/compliance/irs-releases-draft-form-w4-2019

What should employers do?

Businesses must:

•Wait on IRS guidance regarding withholding rules, and submitting and processing a new Form W-4 for 2019.

•Support the new methodology and supply the new 2019 W-4, even though the IRS does not yet require the adoption of new forms.

•Ensure they adjust withholding appropriately for employees who choose to complete a new W-4.

•Stay alert for the finalized withholding structure and Form W-4 for 2019, and ensure their payroll systems can support the requirements.

•Keep an eye on state actions. Many states use the federal tax code as a starting point for tax liability. With the major changes to the federal tax withholding structure, leaders in each state will have to decide how closely they adhere to the federal process.

slivak

QUITE a bit more of a change than that. They're tossing the entire concept of "exemptions," and basically assuming everyone will take the new standard deduction instead of itemizing (I have ALWAYS itemized, but it looks like I'll take the doubled standard deduction for 2018!) All they really need to know is how much you'll be getting in child tax credits so the Lawson system can adjust your withholding accordingly.

Obviously, removing the numbered exemptions TOTALLY changes how Lawson and BSI will calculate withholding. I imagine this is going to require some pretty significant code base changes on Lawson's/BSI's part.

Just as an aside, I went to the web site the IRS listed for their online W4 calculation tool AND I SUGGEST EVERYONE DO THIS IMMEDIATELY!! I'm a Dave Ramsey certified Financial Peace @Work workplace trainer and have a pretty diligent annual routine where I manually calculate my withholding to the penny, shooting for a $0 refund/$0 owed at tax time.

Through the IRS's tool, I discovered that I have ALREADY withheld $400 over my total 2018 tax liability. The tool suggested I file a new W4 with my payroll department with 20 exemptions to completely zero out my federal tax withholding the rest of the year.

The tool can be accessed at https://irs.gov/w4app

Darla Hengel

Infor Product Management and Development are closely watching the IRS website for details and updates regarding the 2019 W-4 changes.

At this time, only a draft version of the form is available. Until the IRS publishes a final version of the 2019 W-4, Infor will not have any information regarding the scope of changes or an ETA on updates.

asztudenyak

LOL!! I like my refund - I seem to have a big bill every spring that I use my refund to cover!! :-)

unknown

Just found this on the IRS website today. It's dated 9/20/18.

Following feedback from the payroll and tax communities, the Treasury Department and the IRS will incorporate important changes into a new version of the Form W-4, Employee’s Withholding Allowance Certificate, for 2020. The 2019 version of the Form W-4 will be similar to the current 2018 version. A new draft version of the W-4 for 2019 will be available in the coming weeks.

The IRS will continue working closely with the payroll and the tax community as it makes additional changes to the Form W-4 for use in 2020. The new version will help employees improve withholding accuracy, and fully reflect changes included in the Tax Cuts and Jobs Act.

For the current 2018 tax year, the IRS continues to strongly urge taxpayers to review their tax withholding situation as soon as possible to avoid having too little or too much withheld from their paychecks. Click here to perform a quick “paycheck checkup” using the IRS withholding calculator.

megan-dwyer

The 2019 form for Missouri has the option to does have the new option to designate a standard amount to withhold. The only option we see at this time is to go back to paper forms for this option, but the concern is caregivers don't know it is there to ask for a paper form. How is everyone else handling this? Does anyone know if Lawson is working on an adjustment to ESS Tac Withholding and Payment Modeling for 2019 or are they waiting for 2020? Thanks!

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