Ask the Experts about the New Tax Law
Welcome to SIA Group’s blog series – Ask the Experts. With ever-changing laws and regulations it can be hard to stay up to date and remain compliant. It’s no surprise you have questions. The good news, we’ve got the answers.
Topic: IRS Revisions to Tax Withholding Tables
Question: When will the IRS issue revised tax withholding tables for our employees’ paychecks?
Answer: Major tax changes approved by Congress in the Tax Cuts and Jobs Act (TCJA) became law on December 22, 2017.
The Internal Revenue Service (IRS), released the initial withholding guidance January 11, 2018 to reflect the new tax law changes. Employers and payroll service providers can implement the changes as soon as possible, but not later than Feb. 15, 2018. Depending on how quickly the new tables are implemented by employers and how often employees are paid (generally weekly, biweekly or monthly) employees will begin to see these changes reflected in their paychecks.
As for new W-4 forms, the IRS indicates that the new information will be designed to work with the existing Forms W-4 that employees have already filed, employees will not be required to complete new Forms W-4. Tax revisions are aimed at avoiding over- and under-withholding of tax as much as possible.
To help people determine withholding, the IRS is revising the withholding tax calculator on IRS.gov. The IRS anticipates this calculator should be available by the end of February. Taxpayers are encouraged to use the calculator to adjust their withholding once it is released.
For more information view Ask the Experts_Tax Withholding Tables.
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