The IRS has updated its 2018 withholding tables to reflect provisions of the Tax Cuts and Jobs Act. Employers use these tables to determine withholding from employees’ paychecks. But it’s your responsibility to ensure you’re withholding enough.
Be sure to:
- Check your paycheck to see how the withholding amount has changed. Employers have until Feb. 15 to implement the new tables.
- Visit irs.gov and use the IRS’s updated withholding calculator.
- Consult your tax advisor to ensure your employer isn’t under – or overwithholding.
- If you believe you may owe money when you file your 2018 return (in 2019), ask your employer to withhold more by completing a new W-4 form.
Download the NOTICE 1036 HERE.
Employer Payroll Tax Responsibilities
The responsibility for payroll taxes continues even after paychecks have been issued to employees. The company is responsible for:
- Paying the employer’s share of payroll taxes
- For depositing tax dollars withheld from the employees’ paychecks
- Preparing various reconciliation reports
- Accounting for the payroll expense through their financial reporting
- And filing payroll tax returns
Contact us with questions about withholding and how the new tax law is likely to affect you.