Just a friendly reminder to review your exemptions in 2020...

[iheartwings]

Payroll is done within our company, and it's always an adventure. So, am I shocked? Not at all. But, it doesn't mean that I have to be happy about it. 

That said, I read somewhere that the withholding tables were changed in 2019, so I am hoping that's why this happened. Many colleagues got hit with this when the tax law changed in 2018, and somehow, I managed to get through it relatively unscathed. 

[wa3more]

It is a little tricky adjusting federal withholding in 2020. No longer can you claim a fix number of exemptions. It's a cryptic form...

[iheartwings]

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@wa3more wrote:

It is a little tricky adjusting federal withholding in 2020. No longer can you claim a fix number of exemptions. It's a cryptic form...

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I totally agree, and I don't get how the old W4 translates to the new form? 

[tacpoly]

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@iheartwings wrote:

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@wa3more wrote:

It is a little tricky adjusting federal withholding in 2020. No longer can you claim a fix number of exemptions. It's a cryptic form...

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I totally agree, and I don't get how the old W4 translates to the new form? 

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The IRS issued a new worksheet and online calculator in 2018 and updated in 2019.  They encouraged people to use the new worksheet or calculator to review withholdings, and employers to use the new withholding tables.  I believe several press releases were made about this by the IRS back in 2018 and 2019.

[Anonymous]

So I logged in to associate services today to get my W2, as they're always available by the 15th. The odd thing was that they are now using Equifax-Employer services, which likely happend when the new Company took over. So as muh as I tried to limit info to EQ, it seems that they now have my income info anyways? lol

Also , I noticed that there were two W2's for 2019 which took me by surprise and the both have different EIN. So again I assume that one of them probably begins the date the new company took over, while the other ends on said date. I've never had any experience with this particular issue, only having several W2s from several different employers. However, both forms have the same Company listed with no mention of the old one. That's why it threw me, I would have expected one to list Company A and the other Company B. 

Anyway, I just though it was interesting about the EQ thing and them having access to my W2s considering the recent 4506-T discussions.

[Revelate]

Haha, this one's cute.

I got given a 3.9% raise by one of my contracting companies (like seriously, WTH?) and it bumped me up into the next tax bracket at least on paper with the rate x 2000 (though, I don't get holidays and the client shuts completely down for a week and that's unpaid) and with the same W4 form as last year, and the same 40 hour week, my take home went down.

Time to go adjust that a little or this year's 8k miss cause of SSA is going to be worse .

[AzCreditGuy]

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@Anonymous wrote:

Sorry to hear.

I owed $6k on either my 2014 or 2015 return for other reasons. Thankfully the IRS offers easy payment plans at very low interest - might be of help to you.

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 Always love stories how the IRS offers low interest loans when you owe them from them using your money for free and making interest at the same time....sorry you had to get a payment plan

[wa3more]

Current interest rate is 3% on installment agreements but the .25% monthly late payment penalty adds another 3 so 6% annually