Hey there, @DEVINR. Thanks for updating us.
Step 3 refers to the Child Tax Credit. If the employee's income will be $200,000 or less ($400,000 or less if married filing jointly), you'll want to multiply the number of children younger than 17 by $2,000. So, for instance, if they have 3 children under the age of 17, the amount entered should be $6,000. I've also included a written form needed to calculate the amount for this form:
Number of Children (17 years or younger) x $2,000 = Amount to be entered on Step 3 of 2020 W-4.
I hope this clears things up for you! Please let me know if there's anything else I can do to be of assistance. Cheers to a safe and productive week ahead.
