New Tax Withholding Tables to be Implemented
As part of the tax reform legislation that was enacted last month, the IRS released an updated version of the income-tax withholding tables for 2018. Employers are directed to use the new tables as soon as possible, although no later than the middle of February, at which point employees should begin to see an increase in their paychecks reflecting the changes. This is only the first step in a series of moves that the IRS plans to take to help improve the accuracy of withholding after the major changes put in place by the new law, so if you are a small business owner and have questions about implementing the new withholding tables, you should strongly consider contacting a tax attorney who can assist you.
When Will I See a Difference in My Paycheck?
While most employees can expect to start seeing an increase in their paychecks in February, the amount of time it takes will depend on the following two factors:
- When their employer implemented the new withholding table; and
- How often they are paid, whether weekly, biweekly, or monthly.
Employees who want to get a better idea of what their adjusted income-tax withholding will be under the new tax law are encouraged to use the withholding tax calculator on the IRS’ website. The calculator is currently being revised and should be available by the end of February.
Will I Need to Use a New Form?
Fortunately, the new withholding tables are designed to work with the standard W-4 forms that employees use to claim withholding allowances. This will help minimize any additional burdens on taxpayers and employers, while ensuring that the amount of tax withholding is correct. However, Form W-4 itself will be changing in the near future to reflect changes in the itemized deductions available to taxpayers, as well as increases in the child tax credit, and the new dependent credit. While the new form will be available to employees who wish to update their withholding or to reflect changes in their personal circumstances, it has not yet been released, so employees are urged to continue using the 2017 form until further notice. Keeping up to date on these changes is important, as the IRS expects to make even more drastic changes in 2019.
Call Today for Help with Your Tax-Related Questions
The recently enacted tax laws will have a significant impact on how tax withholding is calculated, so if you want to make sure that you are not having too much or too little withheld from your paycheck, please contact experienced Florida tax attorney Ronald Cutler, P.A. We understand that our clients lead busy lives and so make ourselves available on weekends as well as weekdays for free one-on-one consultations. Please contact our office today by calling at 386-490-9949 or by completing one of our brief online contact forms. A member of our legal team is standing by and eager to help you through each step of your case.