By Alexis Leondis
The Internal Revenue Service released guidance for employers about how much tax they should withhold from workers’ paychecks in 2018 — and said it would soon offer an online calculator employees can use to make sure the amounts are correct.
Companies have been awaiting details from the IRS, following the sweeping tax overhaul passed at the end of last month that changes tax rates and brackets, increases the standard deduction and repeals personal exemptions. Employers should begin using the new withholding tables as soon as possible, but not later than Feb. 15, according to the IRS notice issued Thursday.
Republicans have promised that American wage earners will see bumps in their paychecks starting in February — after employers have made the withholding adjustments. House Majority Leader Kevin McCarthy of California has said taxpayers should “check their check.”