Employee Online Withholding Calculator Released
Along with the Internal Revenue Service (IRS) releasing a new version of Form W-4, they also developed an online withholding calculator to help employees check their 2018 tax withholding following passage of the Tax Cuts and Jobs Act in December 2017. The IRS is encouraging taxpayers to use this new tool to make sure they have the right amount of tax taken out of their paychecks.
Among other things, the Tax Cuts and Jobs Act released December 22, 2017 increased the standard deduction, removed personal exemptions, increased the child tax credit, limited or discontinued certain deductions, and changed the tax rates and brackets. If changes to withholdings should be made as result of these changes, the IRS withholding calculator provides employees information they need to fill out a new Form W-4. Employees must submit a completed Form W-4 to their employers. The following links may be helpful:
Form W-4 (2018)