What Employers Need to Know About the New Tax Law
Wednesday, July 04, 2018
Since the new tax bill became law, not much has been said about employee withholdings. We'll walk you through the new changes, using the IRS Tax Withholding Calculator, and what you should tell your employees so they can avoid any surprises next tax season.
The Tax Cuts and Jobs Act took effect in 2018, and with it came the following changes: increased standard deduction, fewer personal exemptions, increased child tax credit, limited or discontinued deductions and revisions to tax rates and brackets. These changes and updated withholding tables are outlined in more detail in IRS Publication 15.
The good news is that these updated withholding tables are designed to work with the W-4 forms your employees already have on file – meaning that most employees do not have to revise their forms.