Due to the Tax Cut and Jobs Act enacted Dec. 22, new federal income tax withholding tables for 2018 could result in employees having less federal withholdings deducted from paychecks.
The changes could increase the amount of take home pay for employees.
New 2018 federal tax withholding tables are scheduled to be effective no later than Feb. 15. Monthly and biweekly employees should begin to see changes in withholdings in February.
Employees may wish to consult a tax adviser to assist in determining tax liability and if changes need to be made to their individual 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 W4 information in Firefly at any time.
Learn more about the IRS withholding tables.
The IRS will launch an updated withholding tax calculator online by the end of February. The calculator will assist taxpayers determine appropriate withholdings.
