Reminder of Payroll Changes: Are You Ready?
We would like to remind all employers about the following payroll changes that went into effect Wednesday, January 1, 2020:
- The IRS issued a new Form W-4 to use starting January 1, 2020.
- Employers must use this form for all new employees starting in 2020 and for current employees who wish to adjust their withholding.
- Current employees are not required to submit a new Form W-4 if they have an existing Form W-4 on file that is valid.
- Here is the new 2020 Federal Form W-4 for your reference.
- Iowa issued a new IA W-4 to use starting January 1, 2020.
- Similarly, this form must be used for all new employees starting in 2020 and for current employees who wish to adjust their withholding.
- Iowa has adjusted their withholding tables effective January 1, 2020 so you may notice differences in Iowa withholding.
- Here is the new 2020 Iowa Form W-4 for your reference.
- The Department of Labor overtime update is effective as of January 1, 2020.
- The earnings thresholds used to exempt employees from overtime requirements have been updated.
- Please reference page 9 of the MHCS Year-End Tax Letter to ensure you are in compliance. The full document can be found here.
Lastly, please remember that each employee must have a valid Form I-9, Federal Form W-4, and IA W-4 in their personnel files.
We appreciate your time and upon review of these payroll changes, please let us know if you have any questions.