News & Resources

Title

IRS Releases 2021 Publication 15-T, Form W-4

BY: Curtis E. Tatum, Esq. | 12/10/20

The IRS has released the 2021 Publication 15-T, Federal Income Tax Withholding Methods, and the 2021 Form W-4, Employee's Withholding Certificate. The 2021 Form W-4 has few changes and is very similar to the 2020 Form W-4.

2021 Publication 15-T

Publication 15-T describes how to figure federal income tax withholding using the percentage method and the wage bracket method and describes alternative methods for figuring withholding. The publication explains how to withhold income tax based on pre-2020 Forms W-4 and 2020 or later Forms W-4.

New Optional Computational Bridge

The 2021 Publication 15-T includes a new optional computational bridge that allows employers to treat 2019 or earlier Forms W-4 as if they were 2020 or later Forms W-4. The computational bridge may also be used for lock-in letters based on pre-2020 Forms W-4, and to convert a nonresident alien employee’s pre-2020 Form W-4 to a 2020 or later Form W-4. Note: The new computational bridge only applies to pre-2020 Forms W-4 that were provided to employers before 2020. No employee may now complete a pre-2020 Form W-4.

APA Resources

Additional coverage of the 2021 Publication 15-T is included in a Compliance Update sent to APA members. In-depth coverage will also be provided in the January issue of Payroll Currently.

To learn more about federal and state laws, regulations, and information to keep your company's payroll operations in compliance, check out Payroll Source Plus!


Curtis E. Tatum, Esq., is Director of Federal Payroll Compliance for the APA.