I don't think they listen very well....
ugh..... I just don't think most of my employees are going to be able to understand this! And it's going to be interesting how payroll companies program it!
The programming is easy... The decision which took the longest was deciding whether or not to show the new W4 fields on the stubs (yes, show), and whether or not to use YTD numbers to match the form (no), or the amount used to calculate the check (yes). I believe the W$ should have all the information used to calculate the check, which not accidentally, makes it easy to prove we used the proper calculations.
I just think it's stupid. The average person is not a CPA - which is why most people have their taxes professionally done when it comes to things like charitable deductions, mortgage interest, etc.
Our employees never fill out the 2 job/ 2 earner section anyway and I know they won't want to fill out additional income from other sources, heck I don't even want to fill that out because honestly it is not my employer's business what other income I may or may not have.
In the FAQ section they say that filling out all of the sections is optional anyway . Then what is the point?
They should just leave it as is and require a new form from everyone regardless of a change in their tax situation.
Nothing I have not said before, but employer's should NEVER give tax advise to employees. This would include helping the employee to complete this idiot form. Because no good deed goes unpunished, and the employee (some of them anyhow) will owe taxes at year end and blame the employer when they talk to IRS.
Regarding this being an idiot form, this is the government we are talking about. We have a President who makes up facts as he goes along, and uses a rather unique criteria to choose high government employees. Maybe the head of IRS used to be his bookie.
Lots of turnover at the IRS and lost institutional memory - nobody remembers the last time they tried to change the W-4 worksheets to be "more accurate" (it's an estimate for crying out loud" by going to a four page worksheet - did not change the actual form at all. But employees would not fill out the more complicated worksheet - it was found to be a waste of perfectly good trees and was fairly quickly abandoned after a short time of being in effect.
The big difference this time might be the IRS payroll calculator - I kind of like it. you put in YTD, any anticipated adjustments, and it tells you what you need to do for the remainder of the year - It works in either allowances or dollars. The thing I really like is that the IRS and the W-4 tell the employee about it so payroll people don't have to feel any pressure to help with the W-4 Form other than to provide the official instructions, Pub 505, or notice 1392 (non resident alien instructions).
To me this seems to be another effort to look like they (whoever "they" is) are closing the tax gap by going after the easiest money to collect - that is have employers collect it by having employees include all their other income in the payroll calculation - however, while employees likely won't put up with the worksheets, they are smart enough to not to include income they are not going to report anyway. The only real effect this might have on the tax gap is to inform certain employees that certain non-wage income is also taxable - just in case they did not know. Perhaps that marginal impact is worth the effort, but I suspect a greater impact could be achieved with sufficient funding for the IRS to audit, assess, collect, and prosecute sufficiently to get certain people to actually pay their taxes. Employees are not the big part of the tax gap problem.