Updated 2018 withholdings should show up in paychecks by mid-February
Posted on January 16, 2018
|Now that employers have the newly established 2018 employee tax withholding tables, the IRS has directed that they be put in place by February 15, 2018. That means come mid-February, employees will begin to see increases in their paychecks reflecting the new 2018 income tax changes.
Of course, the precise time it will take employees to see their paycheck changes will vary depending on how often they are paid — generally weekly, biweekly or monthly.
Because the new withholding tables are designed to work with the pre-existing IRS W-4 allowance forms that employees have already filed with their employers, employees do not have to do anything to accommodate the changes.
Mike Poynter, a CPA with Teipen Selanders Poynter & Ayres recommends patience. “The IRS is steadily providing more information and updating tables to help taxpayers and businesses understand the new regulations. It takes time to fully appreciate how the new laws will affect us all.”
Coming soon from the IRS
We do know that the new laws make a number of changes for 2018 that affect individual taxpayers, including:
· An increase in the standard deduction
· Repeal of personal exemptions
· Changes in tax rates and brackets.
These revisions are aimed at avoiding over- and under-withholding of tax as much as possible.
To help people determine their withholding, the IRS is revising the very popular tax withholding calculator on IRS.gov, making it available by the end of February.
The IRS is also working on revising Form W-4 to reflect changes in itemized deductions, increases in the child tax credit, and the new dependent credit and repeal of dependent exemptions.
Whether you have a business or work for a company, chances are you have concerns about how the new tax regulations will affect your bottom line. At Teipen Selanders Poynter & Ayres, we can help.