February 28, 2021

Changes in Federal Tax Withholding in 2020

Changes in Federal Tax Withholding in 2020 welcome and thank you for joining us today to learn about the final 2020 form w-4 my name is Rachel yan chess and, I'm a senior marketing specialist at Levin theum we're excited to have our consulting director of compliance services you Nina Shan whether. CCA and our manager of tax and compliance services Malka Trump's CPA sbpp this afternoon as they discuss critical changes to your federal tax withholding for next year before, I hand this over to you Nina I want you to know that we value your feedback from this session, and we look forward to sharing a few more insights that will help you, successfully grow your business we'll be recording this session and a link with the recording will be posted on the webinars, section of our website to learn more about momentum in our payroll and HR, services check out ww1 you know we're looking forward to this session and I'll hand over to you to get started thank you so much Rachel and welcome everyone to this. Afternoon's webinar federal tax withholding in 2020. How to prepare today's webinar is going to talk about perhaps one of the most significant changes in the history of payroll and at least in the past 20 years in all of my 29 years in the. Payroll industry I can't say that I've ever seen such a sweeping and such a.

Perverse pervasive change that has really affected every employee of every employer. In every industry and in every state meaning we've had like big changes like ACA but even the Affordable Care Act only affected applicable large employers only affected full-time employees we have this year's, overtime rule, change was a final rule and we presented some vivent ium webinars about that there's gonna be another one coming up as well but again that. Only affected certain states and you know if the threshold was lower you know and it only affected certain groups of employees if they fill within a certain salary, range so there have been. Changes everything the big changes but I don't think anything that has been so all pervasive has happened to us in recorded payroll history and before I, get started we're gonna be very hands-on today we're gonna be taking a very detailed look at the form what your role as an employer is in, terms because really this isn't the, w-4 is an employee and an employer form it's a form that's completed by the employee and then given to you as the employer to figure out how much tax. To withhold and to remit on behalf of the employee so what's your part in the form how far does your advisory role go. To your employees how much advice should you be giving them how much hand-holding should you be doing, where might you be overstepping the borders and the boundaries and you know going into the tax advisory position which you don't want to do, we're also gonna I'm gonna be, giving you some tips throughout some best practice tips in terms of how to approach implementing this change so Before we jump in just a couple of an administrative points first of all today's session. Is being recorded and the webinar will be available on the vent iam webinar site there are. Also two handouts if you'll take a look on your handout toolbar first of all. The slides themselves are gonna be provided they're there as a handout so if. There's any information you don't have to necessarily be taking it down you know just you're gonna get the slides and secondly there's a bonus here called the W for payroll stuffer and. This is Ava venti and branded and developed easy-to-understand explanation that you may want to consider providing to your employees as, a payroll stuffer in. Order to help them transition into the new twenty twenty taxes and lastly I want to make a note and I see some of you have already noticed it you do have, a question toolbar and I do. Keep my eye on the questions as I go along I try to work the answers into the presentation and we will try to allow time for question and answers at the end and what I always like to. Say before I begin a webinar if there's a question that's in your. Mind as I'm presenting and explaining then it's probably a question that other people have as well so you'll be doing a favor to. Everyone but asking the question so please do go ahead and feel free to use the toolbar I just want to, address one of the questions that was already asked if CPE credit will be offered for this webinar and the answer. Is no we actually had hosted a CPA based webinar for which CPE. Credit was offered this webinar is geared more toward the employer community of course CPAs are welcome to join as, well but the CPD credits are not or opened also the CPP credits are not being offered for this webinar just to answer a couple.

Questions the way ed will and were asked, okay let's get started so where did this all come from where did all these changes start let's go take a look at the legislative background it all. Started back at the end of 2017 about two years ago in the. Tax cuts and Jobs Act that was passed and signed into law and one of the many many provisions of that Tax Reform Act was a desire to, stimulate the economy by putting more money in the hands of employees on an ongoing prospective basis so the way our pay-as-you-go tax, system works of course. Is that employees pay into the system through withholding and as time goes by the year comes to an end they file their tax returns and they usually overpay the way this old. Withholding system was working and then they, were gonna refund around February March April whenever they would file their forms and the idea behind the TCGA is tcj a goal here was instead of having people getting mostly over withheld and giving these refunds only in, the following year let's decrease the withholding let's make it more accurate. Let's make it more accurately reflect what the actual liability is going, to be and we'll decrease those refunds in you know come tax time of the following year but meanwhile will be increasing net pay. And we will be giving tax payers their money up front putting more money in their pockets. And thereby stimulating the economy that was basic logic and it makes a lot of sense behind changing the tax withholding system of course the employer community had a. Number of associated concerns that came about as a. Result of the way this desire and this you know very admirable desire was going to be implemented first of all what does it mean let's get more accurate withholding what, does that mean exactly it means that we need to increase the. Complexity of the tax withholding system we need to start collecting more information from employers and employees employers need to get more information therefore they're going to, be decreasing the privacy of their employees financial information employees are going to.

Leave a Reply

Your email address will not be published. Required fields are marked *