Corporate Payroll Services Clients Will See Changes Reflected in Payrolls Processed Beginning Monday, January 15, 2018
On January 11, the Internal Revenue Service released updated withholding tables for 2018 to reflect changes required by the Tax Cuts and Jobs Act signed into law last month. Employers should begin to use the new withholding tables as soon as possible, but no later than February 15, 2018, according to the January 11 news release. Clients of Corporate Payroll Services will see the withholding changes reflected in paychecks processed beginning Monday, January 15, 2018, a full month ahead of the IRS deadline.
The new tables take into account the changes in tax rates and brackets, the increase in the standard deduction and the repeal of personal exemptions. They are designed to work with the current W-4 forms that employees have filed with their employers to claim withholding allowances. No changes to the forms are required at this time.
However, the IRS indicated that it is working to revise the Form W-4 and provide a new online calculator by the end of February. The new form and calculator will take into account changes in itemized deductions, increases in the child tax credit, the new dependent credit and the repeal of dependent exemptions, with a goal of producing the correct amount of withholding and avoiding under- or over-withholding of income taxes.
The IRS also posted a Frequently Asked Questions document to clarify commonly asked questions about the withholding changes. Of course, as a Corporate Payroll Services client, if you have a question about your specific situation, please reach out to your local branch office and ask to speak to your Payroll Specialist.
