2018 Income Tax Withholding
On January 9 the IRS released Notice 1036 which updates 2018 income tax withholding tables to reflect changes made by the Tax Cuts and Jobs Act, HR1, enacted December 22, 2017. The new withholding tables for employers will reflect changes in tax rates and tax brackets, the increased standard deduction and the repeal of personal exemptions included in the new tax law.
Employers should begin using the new 2018 withholding tables as soon as possible, but not later than Feb. 15, 2018, and should continue using 2017 withholding tables until the 2018 withholding tables are in place. Although employers and payroll providers are responsible for making changes to payroll withholding, employees should review their withholding to make sure it is accurate. To help employees verify the accuracy of their federal income tax withholding the IRS will release a revised calculator and Form W-4 in the near future.
For Additional Withholding Information, Click Here.