Federal Tax Withholding due to the Tax Cuts & Jobs Act-- Jeffrey Skakun, Staff Accountant
Due to the new tax rates, new tax brackets, new standard deduction, and the elimination of personal exemptions – the IRS had to recalculate their Federal Tax Withholding Tables. The IRS published the 2018 withholding tables on January 11th. All employers should have the new withholding values implemented by February 15th.
While the IRS states that the new withholding tables with work with existing W-4’s, it would be in your best interest to review your paychecks to verify that the correct Federal Withholding is being withheld from your paychecks.
The IRS has a withholding Calculator (http://www.irs.gov/individuals/irs-withholding-calculator-) on their website that you can use to calculate your Federal Withholding. If at the end of the year, you owe more than $1,000 for Federal taxes, then you might have to pay an additional penalty. We here at Hall, Kistler & Company would be happy to help you with any questions or additional tax planning. Please click my link above for assistance or call 330-453-7633.