Your mid-year tax window
is closing fast.
The One Big Beautiful Bill Act rewrote the rules — and most clients haven't yet adjusted their withholding, claimed the new deductions, or confirmed their Q2 estimated payment. June 16th is just days away. Here's what deserves your attention right now.
2019 Is Almost Over!
Time flies when you’re having fun! 2019 is winding down and now is the best time to act to stay out ahead of potential headaches. Here are some easy tasks to help close out 2019 strong:
1099’s:
Gather up information for eligible vendors using form W-9
Update your accounting records
Contact your adviser to let them know you’ll need to file 1099’s
Payroll:
Update employee records
Documents:
Start gathering up documents!
Large purchase invoices
Bank statements
Loan statements
Vehicle mileage
Tax Planning Meeting:
Schedule an appointment for a tax planning meeting before it’s too late! If you wait until after December 31st, you’re options will be severely limited
Communication is key!
An ounce of planning will save a pound of trouble down the road, so there’s no time like the present to start chipping away at these simple tasks!
A New Federal Form W-4 Will Be Required in 2020
Effective January 1, 2020 a new Federal Form W-4, Employee's Withholding Allowance Certificate, will be required.
What is changing?
The updated Form and associated withholding tables have been completely redesigned due to the 2017 Tax Cuts and Jobs Act mandates. Improvements to the form are intended to increase the transparency and accuracy of employee withholding by taking into account spousal income, multiple jobs, and non-employee income (investments, rental income, retirement income, etc.). Other Form changes include new inputs used for calculating federal income tax withholding and no longer allowing employees to claim any number of personal or dependent allowances.
The IRS is not requiring all employees to complete the revised Form and has designed the withholding tables so that they will work with both the new and prior year forms.
So, who will be required to fill out the new form?
Employees hired on, or after, January 1, 2020
Any Employee who makes changes to their withholding elections at any time in 2020 or later
Any Employee who has never previously provided you with a Federal Form W-4
What happens if my employee does not fill out the new form?
Existing Employees withholding will continue based on their previously submitted W-4.
Employees hired on or after January 1, 2020, who do not provide you with the new 2020 Form W-4, will need to be withheld at the highest single tax rate.
Where can I obtain additional information regarding the new form?
See the new 2020 Form W-4: 2020 Form W-4
Additional information and answers to common questions about the new form are available at: Form W-4 Overview
