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Your employee should review their income tax withholdings and submit an updated W-4 form if necessary.
The Internal Revenue Service released an updated withholding calculator and an updated W-4 form to help taxpayers check their 2018 tax withholding following passage of the Tax Cuts and Jobs Act in December.
If you withhold income taxes from your domestic employee’s pay, encourage them to use the calculator and updated W-4 form to make sure they have the right amount of tax taken out of their paychecks.
The Tax Cuts and Jobs Act made significant changes to the tax law, by:
- Increasing the standard deduction
- Removing personal exemptions
- Increasing the child tax credit
- Limiting or discontinuing certain deductions
- Changing the tax rates and brackets.
The withholding calculator will give your employee the information they need to fill out an updated W-4. They should provide you with the completed W-4.
The withholding changes do not affect 2017 tax returns due this April. However, having a completed 2017 tax return can help your employee work with the withholding calculator to determine their proper withholding for 2018 and avoid issues when they file next year.
For GTM clients, if your employee updates their Form W-4:
- Review the updated W-4
- Update the employee’s information in your client portal
- Keep the updated W-4 in your employee’s file
- Call (800) 929-9213, email [email protected], or use our website’s live chat for any questions or assistance
We’ll take care of the rest and ensure the proper amount of withholding is made.
Don’t want to deal with the hassles of changing tax laws and the worries of getting it right? Call GTM at (800) 929-9213 for a complimentary, no-obligation consultation about your situation and let us show you how we provide peace of mind and more time for the things you enjoy in life.
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