The Internal Revenue Service updated the income-tax withholding tables for 2018 to reflect changes made by tax reform legislation that was enacted last month.  Employers should begin using the 2018 withholding tables as soon as possible, but not later than Feb. 15, 2018.  Many employees will begin to see increases in their paychecks to reflect the new law in February.

The new withholding tables are designed to work with the Forms W-4 that workers have already filed with their employers to claim withholding allowances. This minimizes the burden on taxpayers and employers. Employees do not have to do anything at this time.

For 2019, the IRS anticipates making further changes involving payroll tax withholding. The IRS will work with the business and payroll community to encourage workers to file new Forms W-4 next year.

You can read the full article about the new payroll tax withholding table here.

If Quickbooks or another payroll provider is used, these withholding changes should automatically update in your payroll system.

If you are thinking about using Quickbooks Desktop, Quickbooks On-line for the first time or converting to QBO from QB Desktop, call the office at 615-895-8151 or email info@timmontgomerycpa.com.  We offer QB training and QB wholesale billing.