The IRS recently released updated draft versions of the new versions of Forms W-4R and W-4P. Originally released in March 2021, this third draft release for the W-4R and fourth draft release for the W-4P remain largely the same as their respective predecessors. The only substantial difference is a revised worksheet for computing withholding based on entries on Form W-4P.
The primary update from these two draft versions is the timeline for required use. Based on industry feedback and comments received since the original March 2021 release, the IRS will postpone the requirement to begin use of these redesigned forms until January 1, 2023. Payors will have approximately one year (2022) to update their systems to support these new forms, and will be permitted to use them in calendar year 2022 should they be ready to. Further, the 2021 final draft of Form W-4P will no longer be available for use after December 31, 2022.
To review these draft forms and the accompanying notice updating the required timeline of use, click here to review the W-4P and here to review the W-4R.