The new Tax Cuts and Jobs Act passed last December is now fully in effect and many people are noticing changes in their paychecks. While many are glad to have a little extra money in their pockets, we would encourage you to take the extra step and take a look at your Form W-4 (Employee’s Withholding Allowance Certificate) and your 2018 tax withholding.
At the end of February, the IRS released an updated tax withholding calculator and issued a new Form W-4. QBS has updated our new-hire packets with this new information and the IRS instructed employers to begin using the 2018 withholding tables as soon as possible, and no later than Feb. 15.
All that being said, even with the new form required to use for new hires, existing employees are not required to update their old Form W-4. Still, because of the significant changes in the new tax code, we believe it’s important that you encourage your employees to review their current withholding to ensure it’s appropriate. You can direct them to the links below for the IRS Withholding Calculator and FAQs. If you need to access to new form, you can find it here: https://www.irs.gov/pub/irs-pdf/fw4.pdf
- Calculator: https://www.irs.gov/individuals/irs-withholding-calculator
- FAQs: https://www.irs.gov/newsroom/withholding-calculator-frequently-asked-questions.
As always, if you have questions or concerns about how the new Tax Cuts and Jobs Act affects your company’s payroll, HR or benefits, please reach out to your QBS representative or contact us at: firstname.lastname@example.org or 877-834-3985. Our job is to make your job easier.
Read the full article from SHRM here.