Release of 2018 Form W-4 Forthcoming
The Internal Revenue Service (IRS) has released additional guidance on Form W-4 compliance in response to the enactment of the Tax Cuts and Jobs Act, which was signed into law by President Trump in December 2017. Highlights of the guidance are as follows:
- While the IRS is currently working to revise Form W-4 to reflect changes made by the Tax Cuts and Jobs Act, the 2018 Form W-4 may not be released until after February 15, 2018. However, the agency designed the 2018 withholding tables in IRS Notice 1036 to work with the Forms W-4 that employees have already furnished their employers.
- New hires may continue to claim allowances by using the 2017 Form W-4 until 30 days after the 2018 Form W-4 is released.
- Employees experiencing a change in status that causes a reduction in the number of withholding allowances are not required to furnish employers new withholding allowance certificates until 30 days after the 2018 Form W-4 is released.
- Employees who have a reduction in the number of withholding allowances solely due to the changes made by the Tax Cuts and Jobs Act are not required to furnish employers new withholding allowance certificates during 2018.
- Employees may update their withholding at any time in response to the Tax Cuts and Jobs Act. Employees who choose to update their withholding may use the 2017 Form W-4 instead of the 2018 Form W-4 to report changes in withholding allowances until 30 days after the 2018 Form W-4 is released.
Click here to read the additional guidance in its entirety.
For additional tax information, please visit our section on Employer Tax Laws.
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Please Note: The information and materials herein are provided for general information purposes only and are not intended to constitute legal or other advice or opinions on any specific matters and are not intended to replace the advice of a qualified attorney, plan provider or other professional advisor. This information has been taken from sources which we believe to be reliable, but there is no guarantee as to its accuracy. In accordance with IRS Circular 230, this communication is not intended or written to be used, and cannot be used as or considered a ‘covered opinion’ or other written tax advice and should not be relied upon for any purpose other than its intended purpose.
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