IRS Issues Guidance on Form W-4 Substitute Submissions, Additional Guidance for Substitute Submissions of Form W-4

The IRS stated that, for 2022, general guidelines for electronic substitutes to paper Forms W-4 can be found in the 2022 Publication 15-A, Employer’s Supplemental Tax Guide. Additional information concerning electronic substitutes to paper Forms W-4 can be found in the 2022 Publication 15-T, Federal Income Tax Withholding Methods. Publication 15-A and Publication 15-T specified new guidelines for 2022 concerning what an electronic Form W-4 system must provide to an employee.

Employers are not required to set up a system to electronically receive Form W-4 from an employee. For example, if such a requirement is first published in IRS forms, publications, or other guidance, such as Publication 15-T, on December 1, 2022, a reasonable amount of time to implement the requirement would not normally extend beyond February of 2023. While the 2022 Publications 15-A and 15-T provide guidance concerning electronic substitutes to paper Form W-4, they do not address a substitute paper form. Finally, employers are prohibited from accepting a substitute form developed by an employee. An employee furnishing such form must be treated as failing to furnish a withholding allowance certificate.