The IRS has released updated tax withholding tables that employers must use in 2018. The new tables reflect the changes made by the tax reform law—which was enacted December of 2017. Employers do not need to obtain new W-4 forms from employees.
According to the IRS, Notice 1036 is the first in a series of steps that the agency will take to help employers improve the accuracy of their tax withholdings by the a new tax reform law, the Tax Cuts and Jobs Act, enacted on Dec. 22, 2017.
The IRS will issue more withholding guidance in 2018. Employers should become familiar with the new tables and begin using them as soon as possible, but no later than Feb. 15, 2018. Employers should also monitor the IRS’s Notice 1036 website for future guidance regarding income-tax withholding under the Tax Cuts and Jobs Act.
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