The Internal Revenue Service (IRS) released updated income-tax withholding tables for 2018 in Notice 1036, published January 11, 2018. These tables present changes made by the tax reform law enacted in December 2017. The IRS has also published Frequently Asked Questions.
The IRS said employers should begin using the 2018 withholding tables as soon as possible but not later than Feb. 15, 2018.
Employers may still use the current W-4 form because the new withholding tables are designed to minimize taxpayer burden as much as possible and will work with the Forms W-4 that workers have already filed with their employers to claim withholding allowances.
In addition, the IRS is working on revising the Form W-4 to more fully reflect the new law and providing taxpayers information to determine whether they need to adjust their withholding. The IRS is also revising the withholding tax calculator on IRS.gov to help employees who wish to update their withholding in response to the new law or other changes in their personal circumstances in 2018. The IRS anticipates this calculator should be available by the end of February.
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