Employers Given Feb. 15 Deadline To Update Tax Tables

January 12, 2018 at 9:09 am Leave a comment

Hello folks,

This morning I’ve decided that the most important thing I can tell you about is a change to the  tax table.   Take some coffee; here goes.

Moving at the speed of a midterm election, the Trump Administration yesterday unveiled new withholding tables to be used by employers no later than February 15 2018.  The tables reflect the rate changes made in the tax cut legislation passed by Congress in December. Many voters, I mean employees, wouldn’t otherwise see the direct benefit of the tax cuts until they file their tax returns next year.

The W-4 is the form you filled out when you started your job in which you indicated the federal income tax you wanted withheld from your paycheck. You might not have bothered looking at it since then and you should take this opportunity to review your withholdings and see if it is time to make some changes. In a reflection of just how quickly the Treasury Department wants people to see the impact of tax reform on their paychecks, the IRS is coming out with the withholding tables even as it has not completed an update to the W-4.

It’s not clear to me what would happen to employers who don’t update their withholding by the deadline. In a press release the IRS says that employers “should continue to use the 2017 withholding tables until implementing the 2018 withholding tables.” But by publicizing these changes don’t be surprised to see a lot of employees giving their paychecks extra scrutiny in the coming weeks.

By the way, for those of you watching the football game on Saturday night don’t turn the game on late. It’s going to be over awfully quick.

 

 

Entry filed under: General. Tags: , .

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Authored By:

Henry Meier, Esq., General Counsel, New York Credit Union Association.

The views Henry expresses are Henry’s alone and do not necessarily reflect the views of the Association.

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