New tax withholding tables and deadline released
The IRS announced this week the new income tax withholding tables for 2018, reflecting changes made by the GOP’s Tax Cuts and Jobs Act.
Employers should begin using these new tables as soon as possible, but they must be implemented by February 15. Organizations should continue using the 2017 withholding tables until they have implemented the 2018 tables.
There are still seven federal income tax brackets, but the rates have been slightly lowered and income ranges have been adjusted.
In 2017, the standard deduction for a single taxpayer is $6,350, plus a personal exemption of $4,050. The new law combines those into a single, larger standard deduction of $12,000 for individuals and $24,000 for joint filers.
Many employees will begin to see increases in their paychecks, but the time it will take to see changes will depend on how quickly employers implement the changes, as well as how often they are paid.