New tax withholding tables available for employers
BPC Staff Jan 12, 2018 | 5:37 pm
1 min read time
167 wordsAll Latest News, Banking and Finance, Government Policy and Law, Retail and BusinessThe Internal Revenue Service has released Notice 1036, which updates the income-tax withholding tables for 2018 reflecting changes made by the tax reform legislation enacted last month. This is the first in a series of steps that the IRS will take to help improve the accuracy of withholding following major changes made by the new tax law, the agency said in a release. Employers should begin using the 2018 withholding tables as soon as possible, but not later than Feb. 15. They should continue to use the 2017 withholding tables until implementing the 2018 withholding tables, the IRS advised. The new withholding tables are designed to work with the W-4 forms that workers have already filed with their employers to claim withholding allowances, so employees do not have to make any changes at this time. The new tables reflect the increase in the standard deduction, repeal of personal exemptions and changes in tax rates and brackets. An IRS frequently asked questions page on the new tables is available here.