DiSabatino CPA Blog

Mike DiSabatino CPA

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It is important for you to understand the importance for all employers to get new 2019 W-4 forms from all employees. I think that employers should give all employees not only the 2019 W-4 forms to fill out, SIGN, and DATE., and include all 4 pages of instructions, especially pages 3 & 4.
As the accompanying article discusses, only 19% of respondents actually updated their W-4 forms in 2018 after the tax reform details were announced. Even those people should submit new W-4 forms for 2019 because the process has been revised because the 2018 W-4 forms included provisions for "Personal Allowances", which were changed under the tax reform regulations.
It is important to point out the significance of the "Personal Allowance Worksheet" on page 3, and its numerous items. Also, on page 3 is a "Deductions, Adjustments, and Additional Income Worksheet" for people who plan to Itemize Deductions (in excess of the Standard Deductions), claim adjustments to income (especially the 20% QBI/199A exclusion from taxable income), or have a large amount of non-wage income not subject to withholding (although this is usually done by filing quarterly estimates, rather than thru payroll withholdings).
Further, "Two-Earner Families or single taxpayers with Multiple Jobs" should complete that worksheet on page 4.
Finally, after employees complete their 2018 tax returns, usually in April, they should re-visit these W-4 worksheets after they see if they will be owing taxes or overpaying for 2018. If necessary, they can submit a revised W-4 for 2019.

As always, feel free to pass this Tip along to friends, and reach out if you need help with your personal tax and finance situation.

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Phone: 805-389-7300

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