NPRC & APA Ask States for W-4 Plans
The IRS issued the second draft of Form W-4 for 2020 on August 9. NPRC noted that up to ten states still have withholding allowances, but no state equivalent Form W-4; i.e., they rely on the IRS W-4, which will no longer have an entry box for number of allowances. NPRC drafted a joint letter with the APA to prompt states to either adopt new federal withholding inputs within their state income tax withholding regime, or issue a state Form W-4 equivalent with a box for state allowances. This letter may hasten state decision-making, resulting in more programming lead time in late 2019, in case some states make significant changes.