Tables to be Used No Later Than Feb. 15
The Internal Revenue Service (IRS) has released Notice 1036, Early Release Copies of the 2018 Percentage Method Tables for Income Tax Withholding. The notice updates the income-tax withholding tables for 2018, reflecting changes made by the Tax Cuts and Jobs Act. Highlights of the notice include the following:
- Early release copies of the percentage method tables for income-tax withholding that will appear in Publication 15 (Circular E), Employer’s Tax Guide
- Social Security and Medicare tax rates for 2018
- Additional Medicare Tax withholding rates
Employers should begin using the 2018 withholding tables as soon as possible, but not later than February 15, 2018. The new withholding tables are designed to work with the Forms W-4 that workers have already filed with their employers. There is no necessary action to take.
To help taxpayers determine their withholding, the IRS is also revising the withholding tax calculator on IRS.gov. The agency anticipates this revised calculator to be available by the end of February. Taxpayers are encouraged to use the calculator to adjust their withholding once it is released.
Click here to read IRS Notice 1036. An IRS press release is also available for review.
