With the passage of President Donald Trump’s tax reform package, the IRS has put out new withholding tables for employers which will result in less tax being removed from workers’ paychecks and employees seeing larger paychecks.
The Treasury Department reports that approximately 90 percent of workers will instantly see larger paychecks once employers put the tax tables into practice, CNN Money reported.
Officials have given employers a deadline of February 15 to implement the new withholding tables resulting from the passage of the president’s Tax Cuts and Jobs Act.
The IRS also said it was not yet ready to issue a new W-4 form. “We’ve constructed the tables so that most people should be accurately withheld if they leave their W-4 in place,” an IRS official noted on Friday.
But the taxing service did note that the new tax rates will require a new approach to the W-4 forms and that it should have the new forms by 2019. Still, government officials warned employees to re-assess their own withholding to avoid upsetting their personal tax plans.
“We would encourage every taxpayer to run their information through the calculator. Then they can decide what they want to do,” the IRS official said.
“Such a calculator will ask for anonymous inputs — for example, your income, number of dependents and other pieces of information that help determine whether you might be eligible for various tax breaks,” CNN Money noted.
Follow Warner Todd Huston on Twitter @warnerthuston.
COMMENTS
Please let us know if you're having issues with commenting.