| The IRS recently released a new Form W-4 for 2020 with significant changes from the previous Form W-4. Rather than specifying withholding allowances, employees provide employers with amounts to increase or reduce taxes and amounts to increase or decrease wages subject to income tax withholding. Submitting a 2020 Form W-4 is optional for current employees. By default, Red Wing Payroll will continue to use the marital status and allowances that are setup for your employees in 2019 to calculate taxes based on the 2020 tax tables. However, due to technology limitations, Red Wing Payroll cannot be updated to perform the new required calculations to support the 2020 Form W‑4. |
| For additional information regarding details for the 2020 Form W-4 from the IRS on withholding amounts, allowances, deductions, etc. please see the following links: |
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| Important Options for Red Wing Payroll and the 2020 Form W‑4: |
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At your discretion, continue to use the 2019 Form W‑4 with the 2020 tax table update you recently received for Red Wing Payroll. The 2020 tax update does NOT include support for the 2020 Form W-4. By default, Red Wing Payroll will continue to use the marital status and allowances that are set up for your employees in 2019 to calculate taxes based on the 2020 tax tables. |
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For employees that submit a 2020 Form W-4, use the IRS Income Tax Withholding Assistant for Employers to manually calculate the amount of Federal income tax to withhold from the employee wages. Click here for additional information. |
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Transition to CenterPoint Payroll which automatically supports the new 2020 Form W-4. Please contact the Red Wing Software Sales department or e‑mail sales@redwingsoftware.com for additional information. |
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