Updates – Tax Calculator & 2020 Draft W-4.

IRS Launches New Redesigned Tax Withholding Estimator for Paycheck Checkups The IRS has alerted the payroll community about the launch of a new IRS Tax Withholding Estimator online tool. It replaces and expands the old IRS Withholding Calculator [IR 2019-139, 8/6/19; e-News for Payroll Professionals, Issue No. 2019-08, 8/6/19]. The new tool offers a robust, mobile-friendly, step-by-step

Special Report on Earned Income Tax Credit to Improve Participation

A special report was recently released by National Taxpayer Advocate (NTA) Nina E. Olson on the Earned Income Tax Credit (EITC), which makes recommendations designed to increase the participation rate of eligible taxpayers and reduce overclaims by ineligible taxpayers [IR 2019-123, 7/10/19]. Background. The EITC is a tax credit available to low-income employees. The credit reduces

Final Regulations Permit Employers to Voluntarily Truncate SSNs on Employee Copies of Forms W-2

The IRS has issued final regulations that permit employers to voluntarily truncate employee Social Security Numbers (SSNs) on copies of Forms W-2 (Employee’s Wage and Tax Statement) that are furnished to employees [TD 9861]. Proposed regulations. On Sept. 20, 2017, the IRS issued proposed regulations that would allow employee SSNs to be truncated on the copy

IRS Issues Draft Version of 2020 Form W-4

IRS Issues Draft Version of 2020 Form W-4 On May 31, the IRS issued an early release draft version of the 2020 Form W-4 (Employee’s Withholding Allowance Certificate) [IR-2019-98, 5/31/19]. Background. As a result of the enactment of the Tax Cuts and Jobs Act (TCJA) in late-December 2017, significant changes to Form W-4 were required. The IRS postponed a

Social Security Administration Updates

2020 & Beyond SSA Wage Base Increase Estimates The SSA is anticipating a Wage Base Increase for 2020 estimated from $132,900 to $136,800. Below are the SSA projections to the Wage Base through 2028: 2019 — $132,900 2020— $136,800 2021 — $142,200 2022 — $149,100 2023 — $155,700 2024 — $162,300 2025 — $168,900 2026 — $175,800 2027 — $183,300 2028 —