IRS releases 2018 Form W-4
Posted March 5, 2018
On February 28, 2018, the Internal Revenue Service (IRS) released an updated Form W-4, Employee’s Withholding Allowance Certificate. Employers must begin using the new version of Form W-4 for newly hired employees or for current employees who want to update their 2018 tax withholding.
The Tax Cuts and Jobs Act passed in December made changes to the tax law, including increasing the standard deduction, removing personal exemptions, increasing the child tax credit, and changing the tax rates and brackets.
Employees making withholding changes now will not affect 2017 tax returns due this April. However, if employees wish to make changes for next year’s tax filing, they may use the new form and submit the form to their employer.
The IRS plans to work with businesses throughout the year to provide guidance and help educate them about the new withholding guidelines.
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