The Tax Cuts and Jobs Act had a significant impact on tax withholding for both corporations and individuals. With this in mind, the IRS advises employees and payroll professionals to keep an eye on newly released Form W-4s.
Information on 2018 Form W-4
New 2018 W-4
You will notice on the 2018 Form W-4 that personal and dependent exemptions are no longer present, and the new tax code increased the child tax credit. The changes will be evident in the personal allowances worksheet of the Form W-4.
More information regarding the 2018 W-4
Curious about the 2019 Form W-4?
With 2018 now almost halfway behind us, it's time to look ahead to 2019. The IRS released a draft of the 2019 Form W-4. This form is not designed to be filed by taxpayers. Instead, it serves as an update on the IRS' effort to create a suitable form reflecting the change in the tax code. Tax professionals are encouraged to provide comments and feedback to the IRS regarding the draft 2019 form. The form will have another early release this summer after the initial 30-day comment period.
IRS Offers Guidance on 2019 Draft W-4
For employees that have previous versions of Form W-4, perhaps via online withholding forms, the IRS advised employees may use these forms, even though the latest draft version removed references for withholding allowances. One priority of the effort was to make the form backward-compatible, eliminating the possibility of employees having to fill out a new W-4. Our paycheck calculators are up to date with 2018 tax codes – begin your 2018 paycheck modeling now!