Employees across the country are closer to seeing possible boosts to their paychecks.
The IRS’s Notice 1036, which recalculates income tax withholding tables for 2018 based on the new federal tax reform legislation, was released Thursday.
“The IRS appreciates the help from the payroll community working with us on these important changes,” Acting IRS Commissioner David Kautter said in a release. “In the weeks ahead, the IRS will be providing more information to help people understand and review these changes."
Employers are urged to implement the 2018 tables as soon as they can, with a target date of no later than Feb. 15. Until then, 2017 withholding tables should continue to be used.
The new tables reflect the increase in the standard deduction, repeal of personal exemptions and changes in tax rates and brackets.
Employees are not required to take any actions for this to roll out. The new withholding tables will work with Forms W-4 already submitted to employers to claim withholding allowances. The IRS does anticipate that revisions to its online withholding tax calculator will be available by the end of February.