The IRS has released the renewed version of Form W-4. The changes made in the form have created a lot of questions and confusion in the mind of residents. The first change suggests that employers do not need to get all employees to sign the new form. According to the IRS publication, the employees who want to change their withholdings, new employees, and employees who want tax exemptions are needed to sign the new form.
It is the responsibility of the employers to remind their employees before December 31 each year to submit a new form if a change occurs in their withholdings or a change will occur next year. If an employee does not submit a new form then the company must have to withhold the taxes pursuant to the last valid W-4 form.
The previous form is valid if an employee wants changes in his withholdings. The employers do not need to get their employers to sign new forms each year. The employees can use a service, Estimator, in order to know what they should put on their new form. The service can be got by visiting www.irs.gov/W4App.
According to the IRS Publication 15, the new form must have to be filled by all non-US citizens (Aliens). The Resident Aliens of the US will be treated the same as the citizens of the United States of America. The instructions for the nonresident Aliens are given in the link: https://www.irs.gov/pub/irs-pdf/n1392.pdf. The nonresident Aliens cannot claim tax exemptions.
The new Form W-4 is more transparent and simplified as compared to the previous form. It has created some confusions but they will be sorted out easily as it is more simple form as compared to the previous form. The accuracy of the W-4 form is also improved in this version. The employees are advised to follow the guidelines given on the official website of the IRS. Conclusively, the employees who want to change their withholdings or if their withholdings will change next year are required to fill the new form.