New IRS Calculator Gives a Paycheck Checkup
The IRS released an updated tax withholding calculator on IRS.gov and issued a new Form W-4, Employee's Withholding Allowance Certificate. Employees can use the online calculator to check their 2018 tax withholding following passage of the Tax Cuts and Jobs Act in December. If employees choose to adjust their withholding, they can now complete and submit the revised Form W-4. If employees want to change their withholdings, please make the change using Employee Self Service.
The IRS advised checking withholding to avoid facing an unexpected tax bill or penalty at tax time in 2019, or prevent having too much tax withheld. With the average refund topping $2,800, some taxpayers might prefer to have less tax withheld up front and receive more in their paychecks.
When using the IRS withholding calculator, employees will need to have their latest pay stub handy, as they will be asked to enter the federal income tax withheld from their last check, and the total federal income tax withheld to date in 2018.