New Federal Withholding Rules in Effect
Starting on February 15, employers were required to begin using new federal withholding tables. These tables reflect the Tax Cut and Jobs Act, which changed (mostly slightly reducing) the individual income tax rates.
The same deadline applies to changing the withholding rate on supplemental wages, such as bonuses and commissions, from 25% to 22%. The new tables coordinate with Forms W-4 already filed by employees with their employers to claim withholding allowances.
Please contact us if you would like an assessment of your withholding and the implications of the Tax Cuts and Jobs Act on your tax situation.