So It Begins.. Oh Those W4’s.

The W4 form is where it begins!  This is the first in a series of steps that IRS will take to help improve the accuracy of withholding following major changes made by the new tax law. Employers will begin using the 2018 withholding tables as soon as possible, but not later than Feb. 15, 2018.

The new tables reflect the increase in the standard deduction, repeal of personal exemptions and changes in tax rates and brackets.  For people with simpler tax situations, the new tables are designed to produce the correct amount of tax withholding. The revisions are also aimed at avoiding over- and under-withholding of tax as much as possible.

Many employees will begin to see increases in their paychecks to reflect the new law in February. The time it will take for employees to see the changes in their paychecks will vary depending on how quickly the new tables are implemented by their employers and how often they are paid — generally weekly, biweekly or monthly.

More information will be forthcoming about the new withholding guidelines and the calculator for Taxpayers to use – to help workers ensure that they are not having too much or too little withholding taken out of their pay.

The new withholding tables are designed to work with the Forms W-4 that workers have already filed with their employers to claim withholding allowances. This will minimize the burden on taxpayers and employers.  Employees do not have to do anything at this time.

Download the Tax Reform Grid Below to View Highlights of New Changes.

TaxReform17

 

(Partial IRS News Release 2018)