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Important Update: IRS Releases New Form W-4 and Withholding Calculator

So you may have heard…but if not, we have your back! The IRS released a new Form W-4 and Withholding Calculator to help employees and employers make an easy transition after the new tax law passed at the end of last year.

Form W-4: What’s Different?

In adherence to the Tax Cuts and Jobs Act,

  1. Removal of personal exemptions
  2. Increase of child tax credit
  3. Limit/discontinue certain deductions
  4. Change to the tax rates and brackets

Employees who may need to revise their W-4:

  • Those who are part of a two-income family
  • Those who are working multiple jobs at the same time or have only worked for part of the year
  • Those with children who claim credits such as the Child Tax Credit
  • Those who itemized deductions in 2017
  • Those with high incomes and more complex tax returns

“Following the major changes in the tax law, the IRS encourages employees to check their paychecks to help ensure they’re having the right amount of tax withheld for their personal situation,” reported Acting IRS commissioner David Kautter.

Tips for Employers:

  • Encourage your employees to use the new Tax Withholding Calculator to be assured that they are not over/under withheld in Federal taxes
  • The 2018 W-4 Withholding Form is a 4 page document that the employee completes.  It is the employer’s responsibility to make these 2018 W-4 Withholding Forms available to employees.
  • Use your HRIS platform for a paperless W-4 revision; be aware of your employees who may need to revise their W-4 by reading the above section, “Employees who may need to revise a W-4”

How do you get the new Form W-4?

The new W-4 is available on the IRS website, Payroll Systems website, and built-in to InfinityHR software as part of the standard onboarding module*.

*Please note: InfinityHR is for Payroll Systems clients who are using our HRIS services. For more information regarding HRIS services, please contact us today by filling out the form below! All other existing Payroll Systems clients may also contact their client manager directly.

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This article provides general information and shouldn’t be construed as legal or HR advice. Since employment laws may change over time and can vary by location and industry, please consult a lawyer or HR expert for advice specific to your business. You can also contact Payroll Systems to inquire about our HR support services.