© Copyright 2016 ADP LLC. 5800 Windward Pkwy | Alpharetta, GA 30005

Please Contact Us for More Information: 800-000-0000

 

Latest Compliance News

IRS Tax Reform

05/03/18

Author: ADP Admin/Tuesday, May 1, 2018/Categories: News

Summary: The IRS recommends that taxpayers use the Withholding Calculator on IRS.gov to do a “paycheck checkup” to confirm that their employers withhold the correct amount of income tax from their paychecks.

Details: The IRS Withholding Calculator can help prevent employees from having too little or too much withheld from their paycheck. This is even more important this year because of recent changes to the tax law. Having too little tax withheld can mean an unexpected tax bill or potential penalty at tax time in 2019.

Here are some tips for using the Withholding Calculator. Taxpayers should:
  • Use their most recent pay stubs and federal income tax return to help estimate income and other items for 2018. Keep in mind the new tax law made significant changes to itemized deductions.
  • Fill in all applicable information.
  • Make estimates when necessary, but keep in mind the results are only as accurate as the information entered.
  • Check the information links embedded in the program whenever they have questions.
  • Print the final screen that summarizes their entries and the results. Use the results from the Withholding Calculator to determine if they should complete a new Form W-4, Employee’s Withholding Allowance Certificate.

For more detailed information, taxpayers should visit IRS.gov.

Call to Action: Employers may share the above information with their employees. Please contact your Service Team with any questions.