The New Form:
The IRS has published the 2018 Form W-4. The IRS developed updated guidance for withholdings after the latest tax reform bill was signed into law in December. The new withholding tables reflect many changes including updated tax rates and brackets.
What this means for you and your employees:
Employers – You should implement the new form immediately.
Employees – The IRS recommends employees review their current withholdings under the new changes.
Employees can utilize the updated Withholding Calculator on the IRS website to make sure they are having the
correct amount withheld from their paychecks. Should they wish to make any changes, they can complete the new
2018 Form W-4 and provide it to their employer*.
*If your company utilizes Innovative Business Solutions' WebHCM platform, your employees can complete a new form online by logging into their employee profile and navigating to: My Account > My Forms > Withholding > select Form W-4.
For more information on recent changes, visit the IRS Website
Related Articles from IRS Newsroom (click on a title to view):
You can also find the 2018 Form W-4, as well as other forms, by navigating above to Resources > Forms > Federal Forms > then selecting Form W-4 from the available list.
- (2018). Form W-4 (2018). U.S. Internal Revenue Service. https://www.irs.gov/pub/irs-pdf/fw4.pdf.
- (2018). IRS Withholding Calculator. US Department of the Treasury. Internal Revenue Service. https://www.irs.gov/individuals/irs-withholding-calculator.
- United States. Department of the Treasury. Internal Revenue Service. (2018). IRS Withholding Tables Frequently Asked Questions. (28 Feb 2018). https://www.irs.gov/newsroom/irs-withholding-tables-frequently-asked-questions.
- United States. Department of the Treasury. Internal Revenue Service. (2018). IRS Statements -- Withholding for 2018. (01 Feb 2018). https://www.irs.gov/newsroom/irs-statements-withholding-for-2018.
- United States. Department of the Treasury. Internal Revenue Service. (2018). Updated 2018 Withholding Tables Now Available; Taxpayers Could See Paycheck Changes by February. (11 Jan. 2018). https://www.irs.gov/newsroom/2018-withholding-tables-now-available.
Disclaimer: These materials are provided for informational purposes only and are not intended as legal or tax advice. Readers of the IBS Blog should contact their legal or tax professionals to discuss how these matters relate to their individual circumstances.