November 2019 TAX SERVICES 2020 W4 Tax Training

November 2019 TAX SERVICES 2020 W-4 Tax Training Tax Compliance Training Updated December 10 th, 2019 Please go to the Tax Training website to download the must recent version of this Power. Point. https: //www. minnstate. edu/syste m/finance/taxinformation/training /index. html

Agenda • Introduce the IRS 2020 W-4 form • Review the MN Revenue W-4 MN • Introduce changes to ISRS PR 0021 UG Student Employee Set up screen • Provide guidance on completing the 2020 W-4 2

2020 W-4 3

x x x 4 2020 W-4 - Step 1

x 5 2020 W-4 - Step 2

4, 000 6 2020 W-4 - Step 3

Increases withholding Decreases withholding Increases withholding 7 2020 W-4 – Step 4

8 2020 W-4 – Worksheets

9 2020 W-4 – Worksheets

10 2020 W-4 – Step 5

11 Minimum for Valid 2020 W-4

2020 EXEMPT W-4 xx W Ex rite e un mp in lin de t e 4 r c 12

Defaults – 2020 W-4 • If no W-4 or invalid W-4 – Filing status: Single/Married Filing Separately – No other adjustments allowed • NRA employee – Federal filing status: Single/Married Filing Separately – “NRA” written under line 4(c) 13

2020 NRA W-4 W ri NR te in u A lin nde e 4 r c 14

When a 2020 W-4 is Required • • Employees hired in 2020 Employees who claimed exempt in 2019 NRA employees claiming 2020 tax treaty benefits Employees who want to adjust their withholding for 2020 IRS recommends all employee’s review their withholding in early 2020 using the IRS Tax Withholding Estimator at www. irs. gov/W 4 App 15

MN REVENUE FORM W-4 MN 16

DRAFT 2020 FORM W-4 MN • What’s New? – Beginning in 2020, federal Form W-4 does not use withholding allowances. – Employees who complete IRS 2020 Form W-4, must complete Minnesota Form W-4 MN – NRA’s may claim 1 allowance in Section 1 A 17

18 2020 FORM W-4 MN

19 2020 FORM W-4 MN FILING STATUS

2020 FORM W-4 MN SECTION 1 – WITHHOLDING ALLOWANCES 20

3 $10 2020 FORM W-4 MN LINE 1 – WITHHOLDING ALLOWANCES LINE 2 – EXTRA MN WITHHOLDING AMT 21

x x 22 SECTION 2: W-4 MN - EXEMPT

23 W-4 MN - NRA

WHAT IS AN INVALID FORM W-4 MN? • • • 24 Any unauthorized change or addition to the form Employee indicates in any way the form is false Incomplete form Both Section 1 and Section 2 completed Missing or incomplete employer information (only forms required to be sent to MN Revenue)

2020 RULES FOR W-4 MN • Your employee must provide you a completed Form W-4 MN if any of the following apply: – They submit a 2020 federal W-4 – Claim exemption from MN income tax withholding – Request additional Minnesota withholding • If the employee does not complete a Form W-4 MN, withhold Minnesota tax as if the employee is single with zero withholding allowances. 25

2020 RULES FOR W-4 MN Send copies of Forms W-4 MN to MN Revenue if any of the following apply: – The employee claims more than 10 Minnesota withholding allowances. – The employee checks box A or B under Section 2 (exempt), and you reasonably expect the wages to exceed $200 per week. – You believe the employee is not entitled to the number of allowances claimed. 26

2020 NORTH DAKOTA & MICHIGAN – Minnesota Revenue form MWR – Employees claiming reciprocity for Michigan must complete form MI-W 4 for withholding tax – The federal W-4 is used to figure North Dakota withholding tax 27

MICHIGAN MI-W 4 28

CHANGES TO ISRS STUDENT PAYROLL SCREEN PR 0021 UG 29

CURRENT YEAR W-4 VIEW 30

NEW 2020 W-4 RECORD VIEW 31

SCROLL DOWN TO SEE PREVIOUS W-4 RECORD 32

NEW 2020 W-4 RECORD VIEW 33

NEW 2020 W-4 RECORD VIEW 34

NEW 2020 W-4 RECORD VIEW P 35 Step 2 c Box

2020 W-4 WITH STEP 3 DEPENDENT 36

2020 W-4 WITH EXTRA WITHHOLDING 37

2020 W-4 – EXEMPT RECORD P 38

2020 W-4 – NRA WITH 8233 39

2020 W-4 – NRA ERROR MESSAGE 40

COMING SOON - STUDENT INSTRUCTIONS FOR CAMPUS USE 41

SALES TAX FORUM • Campus Questions 42

Resources • IRS withholding tax estimator https: //apps. irs. gov/app/tax-withholdingestimator • Draft 2020 W-4 https: //www. irs. gov/pub/irsdft/fw 4 --dft. pdf • IRS FAQ’s https: //www. irs. gov/newsroom/faqson-the-draft-2020 -form-w-4 • IRS Draft Pub 15 -T https: //www. irs. gov/pub/irsdft/p 15 t--dft. pdf 43

Resources • MN Revenue W-4 MN web page • https: //www. revenue. state. mn. us/form-w-4 mn • Tax Services W-4 MN web page https: //www. minnstate. edu/system/finance/ta xinformation/studentpayroll/minnesota_w 4 mn. html • Tax Services Student Payroll web page https: //www. minnstate. edu/system/finance/ta xinformation/studentpayroll/index. html 44

Tax Services Contact Info • Tax Services, Steve Gednalske or Ann Page – – – 45 Steven. Gednalske@minnstate. edu 651 -201 -1657 Ann. Page@minnstate. edu 651 -201 -1730 Tax Services Website