b'Share With Your Employeesthe forms complexity and increases the transparencyemployees may prefer to have more of their money and accuracy of the withholding system. While itwithheld from their paychecks throughout the year and uses the same underlying information as the oldthen get that money back as a refund when they file design,itreplacescomplicatedworksheetswiththeir tax returns.The simplest way to increase your more straightforward questions that make accuratewithholding is to enter on line 4c the additional amount withholding easier for employees.you would like your employer to withhold from each 2.Whathappenedtowithholdingallowances?paycheck after your Form W-4 takes effect.Whether Allowances are no longer used for the redesigned Formyou will be due a refund (and, if so, the amount of your W-4 to increase transparency, simplicity, and accuracy.refund) when you file your tax return depends on the In the past, the value of a withholding allowance wasdetails of your entire tax situation.tied to the amount of the personal exemption. Due to9.Why do I need to account for multiple jobs (Step 2)? changes in law, currently you cannot claim personalI have never done that before.Tax rates increase as exemptions or dependency exemptions. income rises, and only one standard deduction can be 3.Are all employees required to submit a new Formclaimed on each tax return, regardless of the number W-4?No.Employees who have submitted Formof jobs in the household.Therefore, if you have more W-4 in any year before 2020 are not required tothan one job at a time or are married filing jointly and submit a new form merely because of the redesign.both you and your spouse work, more money should Employers will continue to compute withholding basedusually be withheld from the combined pay for all the on the information from the employees most recentlyjobs than would be withheld if each job was considered submitted Form W-4. by itself.Adjustments to your withholding usually Employee FAQs should be made to avoid owing additional tax, and potentially penalties and interest, when you file your 4.My tax situation is simple.Are some questionstax return.All of this has been true for many years; it optional? Yes. The form is divided into 5 steps.Thedid not change with the recent tax law changes.The only two steps required for all employees are Step 1,old Form W-4 accounted for multiple jobs using detailed where you enter personal information like your nameinstructions and worksheets that many employees may and filing status, and Step 5, where you sign the form.have overlooked.Step 2 of the redesigned Form W-4 If Steps 24 apply to you, your withholding will morelists three different options you may choose from to accurately match your tax liability if you complete them. make the necessary withholding adjustments.5.What happens if I only fill out step 1 and then sign10. Which option in Step 2 should I use to account for the form? Your withholding will be computed based onmy multiple jobs? Which is most accurate? What your filing statuss standard deduction and tax rates,if I dont want to reveal to my employer on my W-4 with no other adjustments.that I have a second job?6.When should I increase my withholding?YouStep 2 allows you to choose one of three options, which should increase your withholding if 1) you hold moreinvolve tradeoffs between accuracy, privacy, and ease than one job at a time or you and your spouse bothof use:have jobs (Step 2) or 2) you have income from sourcesOption 1: For maximum accuracy and privacy (to avoid other than jobs that is not subject to withholding (linerevealing to your employer on your W-4 that you have 4a). If you do not make these adjustments, you willmultiple jobs) use the calculator at www.irs.gov/W4app. You likely owe additional tax when filing your tax return,will be guided to enter an additional amount to withhold on and you may owe interest and penalties.With regardline 4c. You will need to know the approximate amount of to income from other sources, you can pay estimatedpay for each job, but you will need to enter the additional tax instead of having extra withholding. amount on the Form W-4 for only one of the jobs. If pay 7.When should I decrease my withholding? If youfor any of the jobs changes significantly, you will need to are eligible for income tax credits such as the childfurnish a new Form W-4 to have accurate withholding.tax credit or credit for other dependents,and/or youOption 2: If you do not have access to the online calculator are eligible for deductions (other than the standardbut wish to have roughly accurate withholding while deduction), you can follow the instructions describedretaining privacy, you may use Worksheet 1 on page 3 in lines 3 and 4b to decrease your withholdings by theand similarly be guided to enter an additional amount to appropriate amount. withhold on line 4c. You will need to know the approximate 8.I want a refund when I file my tax return.Howamount of pay for each job, but you will need to enter the should I complete the redesigned Form W-4?Theadditional amount on the Form W-4 for only one of the redesigned Form W-4 makes it easier for you to havejobs.If pay for any of the jobs changes the additional your withholding match your tax liability.But somewithholding amount in the lookup table, you will need to www.mrca.orgMidwest Roofer 39'