Thursday, September 27, 2018

Help Employees Set Appropriate Withholding - IRS Change

I got a note from Paychex, my payroll processor. Here's the gist:

IRS Announces Major Changes to Form W-4 Postponed Until 2020

On September 20, 2018, the Treasury Department and the IRS announced that they are delaying any major changes for Form W-4, based on feedback they received from the payroll and tax communities.

Earlier in the year, the IRS released a draft version, making substantial changes to Form W-4, Employee's Withholding Allowance Certificate. These proposed changes were originally scheduled to be made for tax year 2019. With the announcement, these changes are now planned for tax year 2020, with only minor changes expected to the 2019 version. The IRS has stated the 2019 version will remain largely consistent with the 2018 version. The IRS will work closely with stakeholders to make the more substantive adjustments to the 2020 W-4 that will accurately reflect the changes encompassed in the new tax law.

Important 

In the interim, the IRS strongly encourages taxpayers to review their withholding situation using the paycheck checkup at https://www.irs.gov/payments/tax-withholding to ensure withholding is not under-withheld or over-withheld. Please encourage your employees to use the IRS tools available to review their personal withholding situations

With the tax law changes, many people will find themselves under-withholding. This means they will owe money at the end of the year unless they attempted to increase their withholding.

Don't let this happen to your employees! They might be over-withholding or under-withholding. But in either case, give them the information they need to figure out which it is. There's time in the next quarter to make a difference.

Thus ends this public service announcement. :-)

No comments:

Post a Comment

Feedback Welcome

Please note, however, that spam will be deleted, as will abusive posts.

Disagreements welcome!