Updated Employee Tax Breakdown Report

Namely has updated its Employee Tax Breakdown Report to reflect the new federal tax parameters of the Form W-4.

BACKGROUND

In 2020, the IRS released a new version of the Form W-4, which changed the individual federal income tax parameters. Existing employees were not required to fill out a new Form W-4, and Namely migrated existing employees to have their 2019 tax parameters correctly reflected with 2020 tax calculations.

NEXT STEPS

Namely has updated its Employee Tax Breakdown Report to reflect the new federal tax parameters of the Form W-4. Please find this report in Payroll under Reports > Date Range. There will be one row per employee per state tax parameter. For example, employees in Virginia have five state tax parameters, so they will have five rows in the report.

If an employee has not filled out a new Form W-4 in 2020, the columns for 2c (Two Job Household) and 3 (Dependents Amount) will be blank in the report. 

FREQUENTLY ASKED QUESTIONS

If an employee has not filled out a new Form W-4 in 2020, will they appear on the report with correct tax parameters?

Yes. Although existing employees were not required to fill out a new Form W-4 in 2020, Namely migrated existing employees to have their 2019 tax parameters correctly reflected with 2020 tax calculations.

 

Will updates be made to the report or the Form W-4 in 2021?

As of October 2020, no announcements have been made regarding any updates to the Form W-4, and thus, no additional updates to the Employee Tax Breakdown Report, either.