IRS Aims to Issue New Paycheck Withholding Tables in January
January 08, 2018
The Internal Revenue Service (IRS) is preparing guidance on payroll withholding for 2018, and expects to issue initial withholding guidance (Notice 1036) in January reflecting the new legislation. This will allow taxpayers to begin seeing the benefits of the change as early as February. Payroll taxes paid into Medicare and Social Security will stay the same.
The IRS said in an e-mail: “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.”
While not required, once the IRS releases the new withholding tables, employees may want to fill out a new Form W-4. After the new withholding rates are announced, employees may want to look at withholding to make sure they are still satisfied with the amount being withheld.