6 APA's Top Payroll Questions & Answers for 2020 personal exemptions a taxpayer could take on their personal tax return and the number of withholding allowances the taxpayer could take on the Form W-4 filed with their employer. When the Tax Cuts and Jobs Act reduced the value of a personal exemption to zero beginning in 2018, the balance could be maintained only if allowances could not be claimed on Form W-4. Withholding Taxes Form W-4 and EITC notification Q. With the new Form W-4, do employers still need to notify staff about the Earned Income Tax Credit (EITC) each year? A. The changes to Form W-4 for 2020 have no effect on the rules governing the employer's requirement to notify employees of their possible eligibility for the EITC (see The Payroll Source®, §6.6). Iowa employee working in Illinois Q. I have an employee who is a resident of Iowa and works in Illinois. As an Iowa resident, the employee is eligible for reciprocity, but she has not completed Illinois IL-W-5-NR, Employee's Statement of Nonresidence in Illinois. How should I handle withholding state income tax for this employee? What is the backup for this answer? A. You should not withhold Illinois income tax from the employee's pay until she provides you with a properly completed Form IL-W-5-NR. Table 3.1 of APA's Guide to State Payroll Laws, in the table for Illinois says residents of Iowa and several other states are not subject to Illinois state income tax withhold if the form is filed. Form IL-W-5-NR itself provides further backup for this. A prominent 50https://bookshelf.americanpayroll.org/payroll_source/ https://bookshelf.americanpayroll.org/state_payroll/