Monday, January 15, 2018

IRS Releases Updated 2018 Withholding Tables

The IRS has released updated withholding tables for 2018. The tables reflect major changes made by the Tax Cuts and Jobs Act (TCJA), including an increase in the standard deduction, elimination of personal exemptions, and modification of tax rates and brackets. Employers should begin using the updated tables as soon as possible, but no later than 2/15/18

In addition, the IRS is now revising, for a late February release, the “withholding tax calculator” on . IRS has not published a 2018 Form W-4, which notifies an employer of an employee’s withholding requirement. 

Employees are not required to do anything at this time. However, employees are encouraged to use 2017 Form W-4 to update Payroll records on file with their employer, check their actual withholding against the withholding tax calculator when available,  and adjustment withholding early this year to avoid any surprises when filing their 2018 income tax returns.

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