Skip to the main content.
LET'S TALK
LET'S TALK

NEW Form W-4 – “Why Do I Owe?”

Picture of Heather Palermo Heather Palermo Mar 8, 2021 8:04:36 AM

small business payroll small business accounting small business operations
NEW Form W-4 – “Why Do I Owe?”
 

Why Do I Owe?

In 2020, the IRS released a new W-4 that was designed to make it easier for individuals to determine the amount that would be withheld from their paychecks.

However, the new form doesn’t contain a section for allowances and the tax tables changed. As a result, many individuals, if they hadn’t reviewed their withholdings and completed a new W-4, are now finding they owe additional tax.

Personal tax situations change from year to year. To avoid tax day surprises, employers should encourage employees to review their withholdings annually. Be advised that specific tax questions should be directed to the employee’s accountant. 

Resources

1 min read

IRS Warns of Fraudsters Targeting HR Personnel

Picture of Heather Palermo Heather Palermo : Apr 15, 2019 2:43:11 AM

In December of last year, the Internal Revenue Service warned tax professionals of an increase in phishing emails that...

small business payroll small business accounting small business operations
Read More
Employee vs. Independent Contractor – What’s the Difference and Why Does it Matter?

1 min read

Employee vs. Independent Contractor – What’s the Difference and Why Does it Matter?

Picture of Heather Palermo Heather Palermo : May 22, 2020 8:40:00 AM

Employee vs. Independent Contractor What's the difference? Misclassifying an employee as an independent contractor can result...

small business payroll small business accounting small business operations
Read More
Illinois Employers: A Must Read If You Hire Independent Contractors

1 min read

Illinois Employers: A Must Read If You Hire Independent Contractors

Picture of Heather Palermo Heather Palermo : Jun 3, 2020 4:30:45 AM

Are you aware that your independent contractor can file for unemployment insurance benefits? You probably thought that only W-2...

small business payroll small business accounting small business operations
Read More