The IRS recently issued a news release urging taxpayers, especially ones with children or dependents, to double check their tax withholdings. With all of the tax changes that have happened in the past year, and still four months left in 2018, now is a great time to make sure that your tax situation is on track for you to avoid any surprises when filing your 2018 tax return next year.
The IRS specifically mentioned those with children and dependents because there have been significant changes to those sections of the tax code. The base child tax credit has increased, and the different credits involved with children and dependents have changed drastically from what you may have been used to in the past.
The most accurate way to check your withholding status is to use the IRS withholding calculator https://apps.irs.gov/app/withholdingcalculator/. Using this calculator helps you determine if adjustments are needed before the end of year. The longer you wait to make any necessary changes, the more those changes may affect your normal paycheck.
If any changes are needed, fill out a new W-4 form , and submit it to your employer. The Employer Group helps its clients and their employees with administering tax withholdings. If you’re looking for an experienced payroll team to be a great resource to your business, contact The Employer Group at email@example.com, or call 800.406.9675.