The US Internal Revenue Service (IRS) has released guidance on 2018 payroll tax withholding under the government’s newly-passed tax legislation.
Employers should start to apply the new tax tables to their employee payrolls as soon as possible, and no later than 15 February, the guidance states.
The new tax tables are designed to work in conjunction with existing W-4 withholding allowance forms in relation to marital status and the number of allowances that currently apply. Employers do not need to make any changes, including to salaries and wages that were issued prior to the new tax rates being implemented.
The IRS is still working on further details regarding payroll withholding and may revise the W-4 form to take account of any changes that employees might require in response to the new tax law.
The tax agency is encouraging all taxpayers to check their withholdings with new pay cheque calculators to understand the impact of the new law on their tax liabilities and withholdings. The goal is to prevent too much or too little being withheld from their salaries.
Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.
The US Internal Revenue Service (IRS) has released guidance on 2018 payroll tax withholding under the government’s newly-passed tax legislation.
Employers should start to apply the new tax tables to their employee payrolls as soon as possible, and no later than 15 February, the guidance states.
The new tax tables are designed to work in conjunction with existing W-4 withholding allowance forms in relation to marital status and the number of allowances that currently apply. Employers do not need to make any changes, including to salaries and wages that were issued prior to the new tax rates being implemented.
The IRS is still working on further details regarding payroll withholding and may revise the W-4 form to take account of any changes that employees might require in response to the new tax law.
The tax agency is encouraging all taxpayers to check their withholdings with new pay cheque calculators to understand the impact of the new law on their tax liabilities and withholdings. The goal is to prevent too much or too little being withheld from their salaries.
Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.
