IRS Issues Statement Form W-4

ADP posted and article last week based on the IRS statement on the Form W4 and 2018.  I have included the parts of the article that I feel are the parts you as a employer would want to know for 2018.

  • Personal Exemptions – most of us use these to decide how to fill out our W4 for the taxes that are taken out of our paychecks.  This is repealed and gone.

    A pressing question was whether employees would be required to submit a new Form W-4 as a result of the elimination of personal exemptions under the Act. On December 26, 2017, the Internal Revenue Service (IRS) made a statement indicating
    that employees would not need to submit a new Form W-4.
    IRS Statement:
    “The IRS is working to develop withholding guidance to implement the tax reform bill signed into law on December 22.  We anticipate issuing the initial withholding guidance in January, and employers and payroll service providers will be
    encouraged to implement the changes in February. The IRS emphasizes this information will be designed to work with the existing Forms W-4 that employees have already fi led, and no further action by taxpayers is needed at this time.
    Use of the new 2018 withholding guidelines will allow taxpayers to begin seeing the changes in their paychecks as early as February. In the meantime, employers and payroll service providers should continue to use the existing
    2017 withholding tables and systems.”

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