2020 Tax Withholding
W-4 Forms (Employee Withholding Certificates)
With changes in federal and state laws, it is imperative that you review your W-4 status at least once a year. Information regarding the Federal W-4 Form can be found below. Information for the Iowa W-4 Form can be found at the State of Iowa website.
New Federal Form W-4 for 2020
Due to the Tax Cuts and Jobs Act, the Internal Revenue Service (IRS) has released a revised federal Form W-4 for tax year 2020. You may familiarize yourself with the new form here.
Please note that this form is significantly different than the current form.
The IRS has provided the following guidance:
- Employees hired before 2020 are not required to submit new forms; withholding will continue based upon your previously-submitted valid W-4.
- Employees hired before 2020 who wish to adjust their withholding after January 1, 2020, must use the new form.
- Employees hired on or after January 1, 2020, will be required to use the new form.
- Employees hired on or after January 1, 2020, who do not submit a valid W-4 form will be treated as a single filer with no adjustments.
Please note that University of Iowa cannot provide individual guidance on completion of the new W-4 or any related tax implications. We recommend that you contact your tax consultant with any questions you may have.
Social Security Tax
The Social Security withholding tax rate is 6.2%. The 2020 wage limit on which Social Security tax is calculated is $137,700.
The Medicare withholding is 1.45% up to $200,000 and 2.35% for wages received in excess of $200,000.
Federal Income Tax Withholding
Federal tax withholding tables have changed for 2020 based on inflation. Please refer to the IRS Publication 15-T, Federal Income Tax Withholding Methods, for the current tables.
State of Iowa Income Tax Withholding
The Iowa Department of Revenue has issued new income tax withholding tables for 2020 based on inflation. Please refer to the Iowa Department of Revenue site for more information.
State of Illinois Income Tax Withholding
The State of Illinois withholding tax rate is 4.95%.