In response to the federal Tax Cuts and Jobs Act of 2017, the Internal Revenue Service (IRS) has updated the tax tables for 2020 and within the last few weeks released a new federal Form W-4; both have been implemented in HR Direct.
Please note that the 2020 federal Form W-4 is significantly different than the previous form.
Regarding the new Form W-4, the IRS has provided the following guidance:
- Employees hired before 2020 are not required to submit new forms; withholding will continue based upon their previously-submitted valid W-4.
- Employees hired before 2020 who wish to adjust their withholding after January 1, 2020, must use the new form.
- Employees hired on or after January 1, 2020, will be required to use the new form.
- Employees hired on or after January 1, 2020, who do not submit a valid W-4 form will be treated as a single filer with no adjustments.
The IRS has published FAQ’s that may assist you: (https://www.irs.gov/newsroom/faqs-on-the-draft-2020-form-w-4).
Please note that the University of Massachusetts cannot provide individual guidance on completion of the new W-4 or provide the calculated tax withholdings based on your unique tax situation. We recommend that you contact your tax consultant with any questions you may have.
Federal Income Tax Withholding: Federal tax withholding tables have changed for 2020
Commonwealth of Massachusetts Income Tax Withholding: MA withholding is now 5%. It was 5.05% for 2019.
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