IRS Issues New Federal Payroll Tax Withholding Tables
Due to the Tax Cut and Jobs Act enacted December 22, 2017, new federal income tax withholding tables for 2018 could result in some employees having less federal withholdings deducted from their paychecks. This could increase the amount of take home pay for some employees.
The new 2018 federal tax withholding tables are scheduled to be effective no later than February 15, 2018. Monthly and biweekly employees should begin to see a change in withholdings in February. Employees may wish to consult a tax advisor to assist in determining their tax liability and if changes need to be made to their W4 Form, Employee’s Withholding Allowance Certificate. The IRS is working on an updated version of the W4 to reflect the changes in the tax law. The new W4 Form is expected to be available in February. Employees can update their W-4 information in Firefly at any time.
Frequently asked questions regarding IRS Withholding Tables are listed on the following IRS website: https://www.irs.gov/newsroom/irs-withholding-tables-frequently-asked-questions
The IRS also is updating a withholding tax calculator on IRS.gov to reflect the new tax withholding tables. This calculator should be available by the end of February to assist taxpayers in determining appropriate withholdings