Payrolls Processed Beginning Monday, January 15, 2018
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.