July 20, 2018 — We are over halfway into the 2018 tax year which has proved to bring big changes to the tax world. Have you had a change in circumstances? Or a big refund this year? To maintain a proactive approach for the 2018 tax filing season, and to keep the correct amount of money each pay period, the IRS is encouraging taxpayers to do a “checkup” on their federal income tax withholding through payroll.
It is important to monitor withholding amounts to avoid an unexpected tax bill or penalty at the time of tax filing. Conversely, if you have too much withheld, that is money that won't be available to you until you get a refund at some future time. Too much or too little isn't what we want. Wouldn't it be nice to just have what is supposed to be withheld taken from your income? Click the link to see the recent IRS Publication. Also, if you are an employer you can share this with your employees to remind them to complete a Paycheck Checkup for the remainder of the year.
Here's the one-pager you can share with employees: https://www.irs.gov/pub/irs-pdf/p5303.pdf
And here's the IRS Withholding Calculator: https://www.irs.gov/payments/tax-withholding