Final regulations released to Federal Register: Federal income tax withholding from employees’ wages

Federal income tax withholding from employees’ wages

The U.S. Treasury Department and IRS today released for publication in the Federal Register final regulations (T.D. 9924) as guidance for employers concerning the amount of federal income tax that employers withhold from employees’ wages.

1000

Related content

The final regulations implement changes made by the 2017 U.S. tax law (Pub. L. No. 115-97)—the law that is often referred to as the “Tax Cuts and Jobs Act” (TCJA)—and reflect the redesigned withholding allowance certificate (Form W-4, Employee’s Withholding Certificate) and related IRS publications.

The final regulations [PDF 311 KB] (19 pages as published in the Federal Register on October 6, 2020) adopt regulations that were proposed in February 2020 but, according to the preamble, with revisions in response to the comments received in response to the proposed regulations. Read more about the proposed regulations: TaxNewsFlash

The final regulations generally apply on and after the date of publication in the Federal Register (October 6, 2020).  However, certain provisions have an earlier applicability date. Taxpayers may also choose to apply certain provisions of the final regulations on and after January 1, 2020, and before their applicability date as set forth in the regulations.

Advance release of regulations by IRS

The IRS on October 1, 2020, posted a version of these final regulations on its website. That version of the final regulations includes the following statement:

This document has been submitted to the Office of the Federal Register (OFR) for publication and will be pending placement on public display at the OFR and publication in the Federal Register. The version of the final regulations released today may vary slightly from the published document if minor editorial changes are made during the OFR review process. The document published in the Federal Register will be the official document.

Read a computer-generated document [PDF 1 MB] that provides a comparison of the version of the final regulations submitted today to the Federal Register against the version posted by the IRS on October 1, 2020. This unofficial document was produced by KPMG for the purpose of showing what changes, if any, were made to the regulations prior to being released to the Federal Register for publication. It has not been reviewed for accuracy.

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us

 

Want to do business with KPMG?

 

loading image Request for proposal