Configuring employees for 2020 or later W4s

The information below relates to changes made to the W-4 in 2020

The IRS is encouraging, not requiring, employers to use the newly designed 2020 W-4 as they feel that the new form provides more transparency and accuracy. If you have employees that have not turned in 2020 or later W-4s, you can continue to use W-4 forms from 2019 and earlier. If you have some employees with 2019 or earlier W4s and some with 2020 or later W4s, that is fine. You can use the instructions below to configure your employees based on which W4 you have for each employee.

If you have questions about this information, please contact us before proceeding.

Please do the following before installing any Tax Updates or Software Upgrades:

  1. Make a backup of all of your companies.
  2. Make sure all pay periods are closed before installing.
  3. Once you install a Tax Update configured for 2020, if you have not previously reconfigured your employees for 2020 W-4s, you will need to go to Payroll/Configure/Employees and reconfigure whichever employees you need to Calculate Payroll for in the future. In other words, you cannot run a payroll for any employee that has not been reconfigured. You do not need to reconfigure employees that you do not need to run payroll for.
  4. For tips on more efficient payroll configuration, see our Hot Topic: C21 Tips for Efficient Payroll

Please refer to the W-4 published by the IRS at the following address for detailed information about this form and as a reference:

https://www.irs.gov/forms-pubs/about-form-w-4

In Payroll/Configure/Employees, you will see the following Filing Statuses for US FIT :

Filing Status Code
Filing Status
M19 1 Job

Married Filing Jointly 2019 W4 or Married Filing Jointly with 1 Job 2020 W4

S19 1 Job

Single or Married Filing separately 2019 W4 or Single with 1 Job 2020 W4

H20 1 Job

Head of Household 1 Job 2020 W4

MFJ20 2 Job

Married Filing Jointly 2 Jobs 2020 W4

S20 2 Job

Single or Married Filing Separately 2 Jobs 2020 W4

H20 2 Job

Head of Household 2 Jobs 2020 W4

NRA

Nonresident Alien 2019 W4

NRA2020

Nonresident Alient 2020 W4



Configure Employees 

Exemptions – If you are using 2019 or previous Form W-4s, leave the number of exemptions as they are. If you are using 2020 Form W-4, use the chart below to enter the correct number:

Filing Status
Step 2
Number to enter
Married Filing Jointly

Step 2 NOT checked

3

Single, Head of Household, Married Filing Separately

Step 2 NOT checked

2

All Filing Statuses

Step 2 Checked

0


Other Income Amount –
Enter the amount in Step 4(a) of your 2020 W-4 Form.

Deductions Amount - Enter the amount in Step 4(b) of your 2020 W-4 Form.

Filing Status
- Use the tables below to enter the correct status.

2019 or previous Form W-4:
        

Filing Status
Status Code
Married Filing Jointly

M19 1 Job

Single, Married Filing Separately, or Head of Household

S19 1 Job

Nonresident Alien

NRA


2020 Form W-4 Step 2 NOT checked:

Filing Status
Status Code
Married Filing Jointly

M19 1 Job

Single or Married Filing Separately

S19 1 Job

Head of Household

H20 1 Job


2020 Form W-4 Step 2 Checked:

Filing Status
Status Code
Married Filing Jointly

MFJ20 2 Job

Single or Married Filing Separately

S20 2 Job

Head of Household

H20 2 Job

Nonresident Alien

NRA2020


Dependent Amount
– Enter the currency amount listed on 2020 Form W-4 in Step 3.

Exempt from Tax – Check this box if the employee is exempt from tax.

Additional Withholding – Enter the currency amount listed on the 2020 Form W-4 in Step 4(c). This is the additional amount to be withheld per pay period.

North Dakota SIT

Please be aware of the following changes to North Dakota statuses and allowances. You will need to reconfigure your employees in Payroll/Configure/Employees before you will be able to Calculate Payroll.

Form

Factor

Change

2019 Form W-4

Head of Household

Select Filing Status 19 Head of Household

2020 Form W-4

Head of Household

Select Filing Status 20 Head of Household

2020 Form W-4

Allowances

Enter Zero Allowances

 

Click here to download this Payroll Tax Update.