If you manage payroll duties for your business (vs. outsourcing such duties to a payroll service), you may be wondering when the new withholding amounts related to the tax reform bill need to be reflected in your employees’ paychecks? So far, the answer is “when the IRS tells us.”
Here’s the current (1.05.2018) answer to the question provided by the IRS:
It was issued on December 26, 2017
“The IRS is working to develop withholding guidance to implement the tax reform bill signed into law on December 22. We anticipate issuing the initial withholding guidance in January, and employers and payroll service providers will be encouraged to implement the changes in February. The IRS emphasizes this information will be designed to work with the existing Forms W-4 that employees have already filed, and no further action by taxpayers is needed at this time.
“Use of the new 2018 withholding guidelines will allow taxpayers to begin seeing the changes in their paychecks as early as February. In the meantime, employers and payroll service providers should continue to use the existing 2017 withholding tables and systems.”
IRS updates can be found here
- Use of the new 2018 withholding guidelines will allow taxpayers to begin seeing the changes in their paychecks as early as February.
- As of 1.5.2018, The IRS has not released the withholding guidelines
- In the meantime, employers and payroll service providers should continue to use the existing 2017 withholding tables and systems
- Your January 2018 paychecks should look largely the same as your December 2017 paychecks
Remember: Your situation may not be like others so it is important for you to talk with your trusted advisors before making any decisions about taxes.
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