Since the 2020 W-4 change, there are often times questions related to how federal taxes are calculated on paychecks. The calculation and withholding are accurate based on the W-4 selections. However, you and the employee may need to adjust W-4 selections to make sure employees do not owe at the end of the year. There are a few tools for that. There is the IRS tax calculator, and this spreadsheet that can be used also provided by the IRS.

How to calculate?
First, have your employees perform what the IRS calls a Payroll Checkup. Please see the attached IRS Publication 5303. This has the link to the IRS Estimator and what you should have on hand to get the best estimate. This is a great document to provide employee’s.

Make sure the employee reads all instructions that are included with the form.
If they have any questions on how to properly complete the W-4 form, a tax advisor should be consulted.
Here is a link to the IRS FAQs on completing the 2020 W-4 form: