New Form W-4 Issued by IRS for Use in 2020

The IRS has issued a new Form W-4 for 2020. All employers will be required to use this form for new employees hired as of January 1, 2020.

The 2019 Form W-4 underwent two previous updates, one in May and one in August, to incorporate the changes that came with the Tax Cuts and Jobs Act (TCJA). Those changes included suspension of personal exemptions and increasing the standard deduction, but previous versions of Form W-4 still included the withholding allowance based on the personal exemption amount. As such, some taxpayers were over-withheld and some under-withheld.

Current employees are permitted to submit a new Form W-4 after the first of the year, especially if they wish to adjust their withholding amounts. If current employees do not submit the new 2020 Form W-4, employers are required to base withholdings on the data provided on the 2019 version of the form so it would serve everyone best to make sure all employees complete a new Form W-4 in the New Year.

Learn more about the new Form W-4 in this FAQ guide provided by the IRS.

If you have questions about this topic or any of our other business service offerings, please don’t hesitate to call 215-723-4881 or contact us online.

Elm Terrace Gardens Technical Support Request

Craig Covington

Owner & Technical Consultant

Craig serves as a Technical Consultant on the Canon Capital Technologies team, guiding business clients through all aspects of Managed IT Services, Network Security, Data Backup & Recovery, and Help Desk Support. He also leads sales and marketing for the Technologies business unit. He has a business degree from Delaware Valley College and an MBA in Marketing from LaSalle University.  Prior to joining Canon Capital in 1998, Craig worked as a general manager of a car wash, as a controller of a heavy equipment company, and as a senior technician for a major home improvement company.  Craig is a Microsoft Certified Professional.  Craig also serves as executive director of Healthy Neighbors International, a non-profit medical missions organization serving in Nicaragua. Craig resides in Doylestown with his wife and has four children. He enjoys spending time with his family.

Computer Recycling Program

In an effort to support our environment, provide our customers with a cost-effective, easy way to dispose of their unused computer equipment and comply with local equipment disposal laws, we are announcing a new computer equipment recycling program. Here’s how it works:

At your request, we will recycle your used computer equipment for you. Computers will have their hard drives rendered inoperable (so that there is no possibility of anyone extracting data from them). We will then transport your equipment to a certified computer equipment recycling center for proper disposal.

To encourage as much participation in this program as possible, we are keeping the fee for this service to a minimum. To have your computers recycled, simply:

  1. Complete the form below, indicating the quantity of each item to be recycled
  2. Drop your equipment off at our office (along with this form), or give your equipment to one of our staff persons when they are at your office for another engagement
  3. We will send you an invoice for the service fee

Computer Equipment Recycling Program (PDF)

Canon Capital Technical Support Request

Note: Please use this form for NEW support requests only. Do not use for general correspondence or for checking the status of an existing request as this will create duplicate entries in our ticketing software.

Is This Holiday Gift Taxable to My Employee?

The holiday season is here, and for many business owners it is the time of year to show employees gratitude for their service with year-end bonuses or gifts.

Cash is always taxable and must be included in an employee’s W2 wages, so a gift card or gift certificate might seem like the preferred option. However, according to the IRS, even if the cash is given in the form of a gift card or certificate since it can be considered as a cash equivalent, it is still taxable:

“Cash or cash equivalent items provided by the employer are never excludable from income. An exception applies for occasional meal money or transportation fare to allow an employee to work beyond normal hours. Gift certificates that are redeemable for general merchandise or have a cash equivalent value are not de minimis benefits and are taxable.

A certificate that allows an employee to receive a specific item of personal property (i.e. a grocery store certificate for a turkey, Christmas tree, etc.) that is minimal in value, provided infrequently, and is administratively impractical to account for, may be excludable as a de minimis benefit, depending on facts and circumstances.”

Therefore, gift cards such as those issued by Visa, Amazon, Target, etc., are taxable and must be included in an employee’s W2 wages. As stated above, gift cards or certificates that can be redeemed for a specific item or service may be excluded as a “de minimis,” or fringe, benefit.

If you have a question about the gift you’re considering for your employees, we are happy to help. Call Canon Capital Payroll Services at 215-723-4881 or contact us online.

 

Kent Gerhart

Owner & Director of Technologies

Kent has over 35 years of experience in the computer systems and services field as a computer programmer, analyst, operator, and consultant. Before joining Canon Capital as the Director of Technologies in November 2000, he was the owner of KenTech Information Systems, Inc. from 1991-2000. Kent maintains authorizations with technology companies such as Microsoft, Datto, Inc., Altaro Backup, Hewlett Packard, Calyptix Security, and Axis Communications. His education in finance and computer systems comes from Montgomery County Community College and Ursinus College. Kent serves on the board of directors for DCP Theatre in Telford, is a United Way volunteer, and is House Church Shepherd with Renew Community Church in Lansdale. Kent and his wife, Cindy, reside in Telford and they have three grown daughters. Kent’s hobbies range from music (guitar, piano, worship leading), acting in community theatre, and ballroom dancing to doing “handyman” projects.

Services: Let’s Get Started

Accounting

Our team of certified public accountants, certified management accountants, and chartered global management accountants work with you to understand your goals – personal and business.

Payroll

You didn’t start a business to run a payroll company. We stay up-to-date on the latest tax rates and payroll practices so you don’t have to. Our efficient, cost-effective payroll services allow you to continue working on your business goals.

Wealth Management

We work with business owners and personal investors to provide unbiased advice and clear expectations on investment choices.  We work with companies to develop successful retirement plans, such as 401(k) and 403(b) plans, helping employees reach their retirement goals.

Computer Solutions

We take the worry out of your computer system management. From cyber threat management to data back-up, we work with you to address your concerns and make sure your systems are working for you.

Church Payrolls Add Extra Twists to Already Complicated Tax Regulations

If you are processing your payroll in-house, the twists and turns of payroll tax regulations can make it a confusing and frustrating endeavor. If your organization is a church, there are additional factors to consider, such as the clergy member’s employment status and housing allowance.

Clergy: Employees or Self-employed?

Under Federal law, most clergy members have what is called dual status. Dual status means that for Federal income tax purposes, clergy are considered employees; but for Social Security and Medicare purposes, they are considered self-employed. Based on this premise, Social Security and Medicare taxes are not deducted from the clergy member’s pay even if they have not elected out of contributing to Social Security and Medicare.

Instead, due to their self-employed status related to Social Security and Medicare, clergy are responsible for paying both the employee and employer portion of these taxes.  Churches are relieved of the burden of paying the employer portion of Social Security and Medicare. A church might choose to pay clergy for the employer portion of these taxes, but it will need to be included in their taxable income.

Housing Allowance

Under Federal law, clergy members are entitled to claim a housing allowance which provides certain tax advantages. Housing allowances are not taxable for federal and local tax (except Philadelphia) purposes, but the allowances are taxable to the state of Pennsylvania.

If you would like help making sure your church payroll is in compliance, please contact us online or call 215-723-4881.

Client Technical Support Request

Note: Please use this form for NEW support requests only. Do not use for general correspondence or for checking the status of an existing request as this will create duplicate entries in our ticketing software.