IRS Releases 2018 Withholding Tables
The IRS has released updated withholding tables for 2018. The tables reflect major changes made by the Tax Cuts and Jobs Act (TCJA), including an increase in the standard deduction, elimination of personal exemptions, and modification of tax rates and brackets. Employers should begin using the updated tables as soon as possible, but no later than 2/15/18. Employees are not required to do anything at this time. In addition, the IRS is revising the withholding tax calculator on IRS.gov . Taxpayers are encouraged to use the calculator to adjust their withholding once it is released by the end of February. The IRS also is working on revising Form W-4, which will reflect additional changes in the TCJA. The IRS may implement further changes involving withholding in 2019 as it works with the business and payroll community to encourage employees to file new Form W-4 next year.