2020 Federal W/H with 2019 W4 settings
After applying 19E and the 2020 tax rate changes, the federal withholding amounts are different for the same person. if the 2019 W4 is still in effect in 2020, the federal w/h are higher. Once the 2020 W4 form is completed, the federal w/h are lower. Employees are not required to submit a 2020 W4 but it appears there is a significant reduction in withholdings if one is completed. Is this normal?