You might notice a change in your paycheck beginning Feb. 9.
WSU Payroll Services is implementing the new 2018 income-tax withholding tables provided by the IRS that reflect changes made by the federal tax reform legislation enacted last month.
Although the IRS is estimating many Americans will see their net or take-home pay increase, the actual changes will vary depending on each employee’s circumstances.
The new tax law allows employers to use employees’ existing W-4 forms to calculate withholdings based on the new IRS tables, but since many workers haven’t updated their withholding allowances in years it could lead to a potentially unpleasant surprise in April 2019 if they underwithhold.
Employees can easily review their current withholding status on the myWSU portal, and on their semi-monthly earning statements.
“We’re recommending employees check their withholdings,” said Rick Grunewald, associate director, WSU Payroll Services. “Not everybody is going to require changes but this would be a good time to take a look and determine if an accurate amount is being withheld.”
Changes to withholdings can be made anytime throughout the year by submitting a new W-4 form to Payroll Services, French Ad 236.
Payroll Services will process the changes but can’t provide advice on how much employees should withhold.
Meanwhile, the IRS expects to have a revised tax calculator available and posted to its website by the end of February to help people determine how much they should be withholding under the new law.
The new tax law includes numerous changes that make it difficult for even tax professionals to generalize how the impacts will be felt. Tax rates are reduced, for example, but tax brackets have been adjusted, personal and dependent exemptions are repealed and while the availability of itemized deductions has changed the standard deduction has been increased.
The IRS is pledging to continue helping educate taxpayers about the new withholding guidelines throughout 2018. WSU Payroll Services will communicate information as it becomes available.