IRS Issues New Form W-4 and Updates Tax Withholding Calculator
March 05, 2018
The Internal Revenue Service (IRS) has released an updated tax withholding calculator on IRS.gov and has issued a new Form W-4, Employee's Withholding Allowance Certificate. The IRS is not requiring employers to obtain new W-4s from their employees. However, employers should notify employees that using the withholding calculator at IRS.gov and, if necessary, submitting the new form W-4 to their payroll department may result in more accurate withholding.
Employees can use the online calculator to check their 2018 tax withholding following passage of the Tax Cuts and Jobs Act in December 2017. If employees choose to adjust their withholding, they can now complete and submit the revised Form W-4 to their employer.
The Tax Cuts and Jobs Act made changes to the tax law, including increasing the standard deduction, removing personal exemptions, increasing the child tax credit, limiting or discontinuing certain deductions, and changing the tax rates and income brackets.