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Time to reprogram your payroll system for 2020 withholding

Business Management Daily

In a very Grinch-like fashion, the IRS has coughed up some of the withholding instructions you need to begin reprogramming your payroll systems for 2020 withholding. It’s also released a draft of the 2020 Circular E , the Employer’s Tax Guide. The draft of the 2020 Circular E discusses the new W-4.

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If You’re Paid Biweekly, You’ll Probably Get an Extra Paycheck in 2020

HR Digest

It seems pretty straightforward – except that every 11 or 12 years, because of our calendar system and leap years, there are actually 27 pay periods in the year. Does this mean you’ll get an extra paycheck in 2020? Does this mean you’ll earn more than your annual salary in 2020? This means that gross pay would be 3.7%

401(k) 81
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Leap year! How to handle 27 biweekly payrolls in 2020

Business Management Daily

1 payday back into 2020, you’d still have 27 biweekly pay periods, this time in 2021. Although most companies choose this option, it may be a costly decision, since employees will receive an extra paycheck, along with extra taxes withheld and extra benefits provided. 1, 2021, is a holiday. Twist: If you don’t push the Jan.

Payroll 83
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Your choice: To ditch Social Security tax withholding or not

Business Management Daily

President Trump’s executive order suspending the employee portion of Social Security taxes, issued two weeks ago, left many employers wondering what to do. Then, the Treasury Department offered some clarity on the payroll tax. We’ve spent the better part of this week reading other tax lawyers’ opinions about this.

Taxes 81
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How to comply with the 2020 W-4 and withholding changes

Business Management Daily

For decades, payroll departments have used two basic principles to withhold income taxes from employees’ pay: Employees indicate the number of their withholding allowances on their W-4s and you figure their income tax withholding based on those W-4s and your pay period. 2020 Form W-4. Step 1: Enter Personal Information.

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2020 W-4: 2nd draft and your questions answered

Business Management Daily

The IRS promised the second draft of the 2020 W-4 by the end of July. BIG CHANGE: Since withholding allowances have been eliminated, the American Payroll Association questioned why the IRS continued to call the first draft Employee’s Withholding Allowance Certificate. 15-T, here are some questions we’ve encountered about the 2020 W-4.

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The 2020 W-4 continues to confound

Business Management Daily

Few people think about income tax withholding, because, let’s face it, there are tons of other things to think about. So when people do start thinking about income tax withholding, they’re confused. Blame Congress—the Tax Cuts and Jobs Act didn’t give the IRS authority to require everyone to refile their W-4s with their employers.