Retirement Updates

IRS Releases Draft of 2022 Publication 15-A

 

On January 13, 2022, the IRS released a draft of the 2022 Publication 15-A, the Employer’s Supplemental Tax Guide. This publication supplements Publication 15 and contains specialized and detailed employment tax information. The IRS updates Publication 15-A each year to incorporate any recent administrative, reporting or regulatory changes.

The 2022 updates include information on the redesigned Form W-4P and the new Form W-4R. Form W-4P will now be used to request withholding on periodic pension or annuity payments. The new Form W-4R will be used to report additional withholding on nonperiodic payments and eligible rollover distributions. Although the new versions of these forms are available in 2022, the IRS does not require their use until January 1, 2023.

The publication also announces that the rate of social security tax on taxable wages paid in 2022 for qualified sick and family leave taken after March 31, 2021, and before October 1, 2021, is 6.2% each for the employer and employee or 12.4% for both. Qualified sick and family leave wages paid in 2022 for leave taken after March 31, 2020, and before April 1, 2021, aren’t subject to the employer share of the social security tax; therefore, the tax rate on those wages is only 6.2%.

Although the IRS will finalize this form, employers should be aware of the availability of the updated publication and most recent modifications.

Draft Publication 15-A »

PPI Benefit Solutions does not provide legal or tax advice. Compliance, regulatory and related content is for general informational purposes and is not guaranteed to be accurate or complete. You should consult an attorney or tax professional regarding the application or potential implications of laws, regulations or policies to your specific circumstances.

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