The IRS has updated its 2018 withholding tables to reflect provisions of the Tax Cuts and Jobs Act. Employers use these tables to determine withholding from employees’ paychecks, but ensuring that you’re withholding enough is your responsibility. Be sure to:
- Check your paycheck to see how the withholding amount has changed. Employers have until February 15 to implement the new tables.
- Visit irs.gov and use the updated withholding calculator (available soon).
- Consult your tax adviser to ensure your employer isn’t withholding too much or too little.
- If you think that you might owe money when you file your 2018 return in 2019, ask your employer to withhold more by completing a new W-4 form.
Contact us with questions about withholding and how the new tax law is likely to affect you.