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New Withholding Calculator Helps Employees Check Paycheck

What Employers Need to Know About Changing Retirement Plan Providers

Your client’s employees can check the accuracy of their withholding with the new Withholding Calculator from the IRS. This tool has been updated to reflect recent tax law changes.

 

The calculator was released on the heels of revised withholding tables and the new version of Form W-4 in February.

 

Encourage your clients and their employees to do a “Paycheck Checkup”

The IRS recommends that you ask employees to use the new Withholding Calculator – and now, coming up on the end of tax season, is a great time to do it since awareness is up this time of year.

 

A checkup can keep a taxpayer from having too little tax withheld – and avoid facing an unexpected bill at tax time next year. It can also let an employee know if they’re having too much tax withheld. The IRS says the average tax refund is $2,800, and some employees may prefer receiving that amount in their paychecks throughout the year.

 

If changes to withholding should be made, the Withholding Calculator gives employees the information they need to fill out a new Form W-4.

 

“Withholding issues can be complicated, and the calculator is designed to help employees make changes based on their personal financial situation,” Kautter said. “Taking a few minutes can help taxpayers ensure they don’t have too little – or too much – withheld from their paycheck.”

 

It’s important to note that the withholding changes do not affect 2017 tax returns due April 17. However, having a completed 2017 tax return can help taxpayers work with the Withholding Calculator to determine their proper withholding for 2018 and avoid issues when they file next year.

 

For questions and answers, see Withholding Calculator Frequently Asked Questions.

 

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