We’ve received calls about employees being concerned that their tax withholdings may not be correct. With the changes made on the 2020 Employee’s Withholding Certificate (Federal Form W-4), employees should verify that correct tax amounts are being withheld. If withholding is incorrect, they could owe more taxes when filing their 2020 tax return.
What You Can Do Now
Direct your employees to use the IRS Tax Withholding Estimator to ensure they’re withholding the right amount in their paychecks. If they would like to make any changes, please submit updates to the data on the W-4 as soon as possible. If an employee’s year-to-date withholdings are significantly under-withheld, they may wish to have additional funds withheld each pay period for the remainder of the year.
Employees should seek professional tax advice if they are unclear on what to do. Remember, we cannot, nor should you, give employees tax advice.
Contact your CPU payroll specialist or call 573-334-2420 with any questions.