The Internal Revenue Service (IRS) has been working throughout this year to make changes to the Form W-4. These revisions became necessary after the approval of the 2017 Tax Cuts and Jobs Act. The IRS recently issued a draft version of the new Form W-4, and aims to release a final version sometime next month—just in time for its use starting on January 1, 2020.

Although the revised W-4 is a couple of months away from becoming official, churches should begin preparing now to integrate this change. Once the new year begins, employers can still use the information on file prior to 2020 for current employees, however, employers will need to use the new Form W-4 for all new employees—as well as for any current employees who elect to change their withholdings (a common occurrence whenever there’s a major life change, such as a marriage or the birth of a child).

Attorney Richard Hammar’s new article provides a simple explanation regarding all of these shifts, including excerpts from an IRS Q&A that cover relevant information for churches.

Also this week:

• These 10 commandments of church management include several legal, tax, and risk management considerations—use them to educate your pastors and leaders on key issues.
• A new comprehensive study sheds more light on the financial practices of congregations nationwide.
• LAST CHANCE: Join me and Church Law & Tax this Friday in Chicago for the Christian Legal Society’s all-day “pastors’ forum” addressing key legal issues (registration costs $30, includes lunch, plus gives access to additional workshops the next day).

The Lord bless you and keep you,