The IRS released a draft of the 2019 IRS Instructions for Form W-4, Employee’s Withholding Allowance Certificate. While changes may be made to the instructions and form prior to release, they do not expect those changes to be significant.

The changes were made in response to the 2017 Tax Cuts and Jobs Act (Pub. L. 115-97) eliminating personal exemptions, which for many years was the basis of withholding allowance amounts claimed on the form. The new Form W-4 also indicates plans to change the 2019 federal income tax withholding tables, with the removal of the withholding allowance amounts.

While you should not submit any draft forms, we do recommend you familiarize yourself with the potential changes. The new Form W-4 also comes with an 11-page set of employee instructions to be reviewed. You can find the details here:

These changes will require reconfiguration of systems used to calculate withholding amounts, but rest assured, SmartPayroll Solutions will be ready. And we will keep you informed!