Drake Accounting®: How do I select the new 2020 Form W-4?
Starting with Drake Accounting® 2020, you can select either the W-4 prior to 2020 or the new W-4 for 2020.
There is no current requirement for an existing employee to use the new 2020 W-4. Existing employees can choose to use either form, however, any employee hired after January 1, 2020 is required to use the updated Form W-4.
Pre-2020 Form W-4
Go to Employees > Employee Setup > Choose an employee and click the Federal tax tab. Click the box Pre-2020 W-4 to show the simplified options that are applicable to the previous Form W-4. This feature will make this section remain the same as it has been in prior-year Drake Accounting®.
- Filing Status - Choose the applicable status that will be used on the federal tax return.
- Extra Withholdings - (optional) enter the dollar amount that the employee has chosen to be withheld in addition to the calculated amount.
- Exemptions - enter how many exemptions the taxpayer claimed (could claim under the prior law).
2020 Form W-4
Go to Employees > Employee Setup > Choose an employee and click the Federal tax tab. Un-check the box Pre-2020 W-4 to show the options applicable to the new 2020 W-4, as follows:
- Filing Status - Choose the applicable status that will be used on the federal tax return.
- Extra Withholdings - (optional) enter the dollar amount that the employee has chosen to be withheld in addition to the calculated amount.
- Dependents - enter the dollar amount that corresponds to the amount of dependent credits claimed on the federal tax return.
- Other Income - enter any additional income to be used in the calculation.
- Deductions - enter any deductions that the taxpayer will claim on the federal tax return.
- Step 2 Checkbox
See the IRS FAQs on the 2020 Form for more information.