The Internal Revenue Service (IRS) has published a new Federal W-4: “Employee’s Withholding Certificate” that is effective January 1st, 2020. The form was updated in order to comply with the Tax Cut and Jobs Act enacted in 2017. The new form has removed allowances in accordance with the Tax Cut and Jobs Act legislation and instead consists of 5 steps. Step 1 where the employee enters their personal information, and Step 5 where the employee signs and dates the form are mandatory steps. Beginning January 1st, 2020, the updated form is required to be used by any newly hired employees (i.e. hired on or after January 1st, 2020) as well as employees needing to make adjustments on or after January 1st, 2020. However, employers must honor any valid pre-2020 Federal W-4 forms that are on file for employees if they do not need to make any changes.
The official, final 2020 Federal W-4 form is available here: https://www.irs.gov/pub/irs-pdf/fw4.pdf.
This one off patch contains the necessary updates to the professional forms and federal taxation payroll formulas to comply with the 2020 Federal W-4 form. It also contains modifications to the Generate Employee Federal W-4 concurrent process to accommodate both the existing (pre-2020) as well as the new 2020 Federal W-4 forms.
IMPORTANT NOTE: Review this community post for other important details and dates: Announcement US Pay: The Federal W-4 2020 Phase I Update Patches have been released!
Patch Numbers:
Release 12.1 – Patch 30455584:R12.PAY.B
Release 12.2- Patch 30455584:R12.PAY.C
Please see the following readme’s on My Oracle Support for full details***:
Document 2617957.1 – Release 12.1.x – 2020 Federal W-4 Phase 1 Update Patch
Document 2617959.1 – Release 12.2.x – 2020 Federal W-4 Phase 1 Update Patch
If you experience any issues with this patch, please log a Service Request on My Oracle Support, product: Oracle HRMS (US)