The wait is over. After months of speculation, the IRS has finally released the newest version of the Form W-4—the tax form that employees fill out to indicate how much federal income tax should be withheld from their paychecks.
The news comes two months after the signing of the historic Tax Cuts and Jobs Act. Given that law’s scope, payroll and tax professionals have speculated that the IRS would need to publish a revised version of the tax form and its accompanying withholding calculator. The calculator, which was also updated on Wednesday, can be used to determine how an individual should fill out the Form W-4 to avoid owing taxes at the end of the year.
Companies should start using the updated Form W-4 no later than March 27. While the IRS has stopped short of requiring businesses to collect new forms from active employees, HR teams should ask employees to use the new withholding calculator to determine if they need to complete a new form.
Namely’s free Employee Onboarding Toolkit has been updated with the latest version of the Form W-4.