HR PEO Blog

The Internal Revenue Service has made a recent announcement suggesting part-year or seasonal employees to do a “paycheck checkup”. The changes made from The Tax Cuts and Jobs Act (enacted earlier in the year) have made some significant differences in how the withholding tax gets calculated this year.  Part-year and seasonal workers are especially vulnerable to incorrect calculations due to the limited or shorter period of employment, instead of calculating income on the entire year of employment.


The easiest way for a part-year or seasonal employee to do a checkup is to visit The Withholding Calculator on IRS.gov. The calculator has been designed to help estimate income and deductions to make sure the right amount of tax is being withheld. Based on the results of the calculator, employees can then change their filing and allowances on Form W-4 to update their tax withholding.

 

More information can be found at the IRS news release here: https://www.irs.gov/newsroom/seasonal-part-year-workers-urged-to-check-tax-withholding-amount

The Withholding Calculator can be found here: https://www.irs.gov/individuals/irs-withholding-calculator

Published in IRS
Wednesday, 28 March 2018 14:52

IRS Tax Withholding Calculator

2018 brought several changes, a primary one being our tax law. As always, it’s important for you or your employees to understand the taxes being taken from their paycheck. It helps prevent an unanticipated tax bill when 2018 taxes are filed. The IRS has created a new W4 withholding calculator to assist taxpayers in calculating the correct amount of taxes for their paychecks. Interested? Follow the link below to use the IRS withholding calculator. 

https://www.irs.gov/individuals/irs-withholding-calculator 

Published in W-2
Friday, 26 January 2018 14:19

Changes to Federal Tax Withholding for 2018

The IRS recently released updates to the income-tax withholding tables for 2018. This change updates the 2018 tax tables in accordance with the tax reform legislation enacted at the end of the year (HR1). Employers should update their tables as soon as possible, but at least by February 15th.

The IRS states that the new law “makes a number of changes for 2018 that affect individual taxpayers. The new tables reflect the increase in the standard deduction, repeal of personal exemptions and changes in tax rates and brackets.” The IRS is also working on revising the withholding tax calculator on their website to assist individuals in determining their withholding on the form W-4.

As a result of the table change, employees should generally see an increase in their take home pay. We have already seen increases to take home pay ranging from 1.5% to 2.5%. As a reminder, now might be a good time to increase your contribution to your 401k retirement plan. Adding an additional 1% to your retirement plan will likely result in a slight increase to your take home pay and an increase to your retirement account, resulting in a “win-win” scenario.

Additional information regarding the updated withholding tables can be found here: https://www.irs.gov/newsroom/updated-2018-withholding-tables-now-available-taxpayers-could-see-paycheck-changes-by-february
Published in IRS
Monday, 17 December 2007 17:00

2008 W-4 Form

IRS releases the new 2008 W-4 form

The IRS has released the 2008 version of the W-4 form.  The W-4 form should be filled out by all newly hired employees in 2008 and any current employees wanting to make changes to their withholding allowances or marital status. For a copy of the new form go to http://www.irs.gov/pub/irs-pdf/fw4.pdf.

Published in W-4

The “Making Work Pay" provision of the stimulus package will reduce income tax withholding for majority of employees.

The IRS has just released the changes to the income tax withholding tables used to calculate employees’ tax withholdings from their pay checks. The change comes from the $400 to $800 refundable tax credit provided under the stimulus package. This tax credit will be provided to employees through out 2009 and 2010 by changing the tax withholding from their normal paychecks. This credit is for employees making less than $75,000 individually or $150,000 for married couples. A new W-4 form is not needed to claim this tax change.  StaffScapes  recommends that employees with multiple jobs or couples that combined put them in higher tax brackets should contact their tax advisor to verify and/or revise their W-4.

The IRS has made it clear that the new tax withholding tables are to be used as soon as possible, but at the latest by April 1, 2009.  As of Monday, March 2, 2009, StaffScapes’ employees will have the advantage of having their checks processed using the new tax tables, resulting in more “take home” pay for most employees.  Additional information about the stimulus package, including the “Making Work Pay” provision, can be found on the IRS website at: http://www.irs.gov/newsroom/article/0,,id=204335,00.html?portlet=6.