The IRS has released a new W-4 form and an updated W-4 Calculator. Reviewing and completing a new W-4 form is encouraged to do every year, even more important this year, because of recent changes to the tax law for 2018. The Calculator helps you identify your tax withholding to make sure you have the right amount of tax withheld from your paycheck at work.
If employees choose to adjust their withholding, they can now complete and submit the revised Form W-4 to their employer.
The IRS also posted new Withholding Calculator Frequently Asked Questions.
“Following the major changes in the tax law, the IRS encourages employees to check their paychecks to help ensure they’re having the right amount of tax withheld for their personal situation,” Acting IRS Commissioner David Kautter said in a statement.
The IRS is not Requiring employers to obtain new W-4s from their employees, however it is recommended employers notify employees, using the W-4 calculator and if necessary, submitting a new W-4 to their employer’s payroll department is encouraged for a more accurate withholding of taxes for 2018.
Links:
2018 W-4 Form https://www.irs.gov/forms-pubs/about-form-w4
W-4 Calculator https://www.irs.gov/individuals/irs-withholding-calculator
W-4 Calculator Frequently asked questions https://www.irs.gov/newsroom/withholding-calculator-frequently-asked-questions
Changing Income Brackets https://www.shrm.org/ResourcesAndTools/hr-topics/compensation/pages/fica-social-security-tax-2018.aspx#article-section-8
I hope you found this information useful!
-Margi Jandro, Consultant with Implementation Specialists
