PUBLICATION 15 (CIRCULAR E)

[Medlin Software, Dennis]

Something similar to this is what employers should be doing / handing out.

https://www.americanpayroll.org/docs/default-source/2019-forms-and-pubs/19n16-2020_form_w-4_letter.pdf

First paragraph (bold and italics added by me)

"Because the 2020 Form W-4, Employee’s Withholding Certificate, will be very different from previous versions, communicating the changes to employees will be challenging. Payroll professionals must balance the desire to be helpful to employees with the understanding that they need to be careful not to give tax or legal advice. "

Also of note:

The sample letter comes "from" payroll, with a CC to HR (reinforcing W4 record keeping/compliance is not the purview of HR)

Nothing in the sample letter even hints at the employer providing any assistance with preparing the form, but instead, directing to the IRS site for directions and suggestions. PERSONALLY, I would have NOT included the "we recommend", and instead, completely leave out any employer thoughts or opinions.

[BLACK BART]

And furthermore...: If the employee's too stupid to figure it out AND the employer's not supposed to be allowed into the fray at all under any circumstances AND I (for sure) don't want to do it THEN who the heck will be filling it out?  If it's you, then it's practically a given that the employee is going to ask the employer for help first.  So, when the employer comes to you with it and asks what to do about it - Am I to understand that you're going to tell him to send the employee to you AND you (the tax expert in question) are going to tell the employee that he must fill it out because you are obligated NOT to give him any "tax or legal advice" (plus he owes you 50 bucks)? Won't he/she think you're nuts? How are you going to help him without helping him? 

Just thought of some sweet revenge: I'm going to tell them to call the IRS toll-free number for advice and there'll be a short () wait on hold.  Should be quite a bit of fun when they finally get through.

[Medlin Software, Dennis]

41 minutes ago, BLACK BART said:

And furthermore...: If the employee's too stupid to figure it out AND the employer's not supposed to be allowed into the fray at all under any circumstances AND I (for sure) don't want to do it THEN who the heck will be filling it out?  If it's you, then it's practically a given that the employee is going to ask the employer for help first.  So, when the employer comes to you with it and asks what to do about it - Am I to understand that you're going to tell him to send the employee to you AND you (the tax expert in question) are going to tell the employee that he must fill it out because you are obligated NOT to give him any "tax or legal advice" (plus he owes you 50 bucks)? Won't he/she think you're nuts? How are you going to help him without helping him? 

Just thought of some sweet revenge: I'm going to tell them to call the IRS toll-free number for advice and there'll be a short () wait on hold.  Should be quite a bit of fun when they finally get through.

If only those who have to follow the rules made the rules... we would put ourselves out of work because the rules would be simple enough for most to actually follow.

If my tax prepare is unwilling to help me with a tax form (which the W4 is), then I would be looking for another preparer.  But, that person is me, and I am not about to fire me, yet .  The IRS tells employers to direct the employee to the IRS tools, so that advice is not wrong.  Not really the best advice, but not wrong.

I can see it now, and it has happened (Carnac speaking).  Employer helps employee.  Employee ends up owing.  Employee gripes at preparer as to why they owe.  They shop for another preparer, none who can magically make a refund out of a mess.  Preparer then, rightly so, directs the employee to the employer, wo was giving tax advice.  Still a Catch-22.  Still, my lowly opinion, the preparer is the only accurate (if not proper) place to review stub(s) and W4 for proper withholding to meet whatever magic figure the employee and preparer come up with for the annual withholding.  This has happened in my own extended family, surprise bill with tax return, and no one claims to be responsible.  So, for employers, they already have direction to follow, give the suggested notices and suggested information the tax agencies provide.  The IRS suggested notice is reasonably well done this time.

[Sara EA]

Over a decade ago there was some big change in our state tax laws including filing status.  A local employer thought not to trouble employees with new W4s and instead payroll revised them to match the new rules.  For some reason lots of people became HOH.  I had two clients from that employer and both owed lots of state tax.  Believe it or not, the employer paid their underwithholding.  Yet another reason for employers to stay out of the W4 business.