Last week the Internal Revenue Service issued the 2018 income-tax withholding tables that reflect the changes made by the tax reform law passed in December 2017. The IRS has advised that employers should begin using the 2018 tables no later than February 15, 2018.
Xenium will be revising our payroll system withholding tables and employees will see withholding changes in their checks beginning in February. If you are not using Xenium as your payroll provider, please be sure to work with your payroll manager or vendor to ensure that your payroll system is updated with the correct tables in light of the IRS guidance.
The IRS has issued a Frequently Asked Questions page on their website if any of your employees have questions. Notice 1036 also provides a detailed account of the changes as well as the 2018 withholding tables. As of January 5, 2018 the IRS Withholding Calculator and the 2018 W-4 are being revised by the IRS with an anticipated release by the end of February 2018.
Should any of your employees have questions about their withholding they can get many questions answered at www.irs.gov or by consulting with their tax adviser. Every tax situation is different; Xenium advises employers should refer specific tax questions to an employee’s tax advisor.