04/11/2018
The Tax Cuts and Jobs Act made major changes to the tax law. Because of this, you and your employees should do a paycheck checkup using the Withholding Calculator on IRS.gov.
https://www.irs.gov/individuals/irs-withholding-calculator
The calculator will help determine the right amount of withholding and can help prevent having too little (or too much) tax withheld.
If necessary, complete a new W-4 form.
https://www.irs.gov/forms-pubs/about-form-w4
Recent changes affecting withholding include:
• Reduced tax rates
• Elimination of personal exemptions
• Increased standard deductions: $12,000 for singles, $18,000 for heads of households and $24,000 for married couples filing jointly
• Increased child tax credit: $2,000 per qualifying child and a new $500 credit for other qualifying dependents
• Changes to itemized deductions
A paycheck checkup is especially important if you or your employees:
• Are a two-income family
• Have two or more jobs at the same time or who only work part of the year
• Claim credits like the child tax credit
• Have dependents age 17 or older
• Itemized deductions in 2017
• Have high income or a complex tax return
• Have a large tax refund or tax bill for 2017
IR-2018-73, March 26, 2018 — Launching a special week of activities, the IRS today continued its effort to encourage taxpayers to do a “paycheck checkup” to make sure they have the right amount of tax taken out of their paychecks for their personal situation.