Yesterday, the Internal Revenue Service released an updated version of Form W-4 for 2018. This year’s W-4 was released later than usual because of the recent Tax Cuts and Jobs Act. Please view the 2018 W-4 by clicking here.
Every employee should check their paystubs after these new changes. Please share the
Journey Calculators to help assist employees gauge how these changes will affect their gross to net pay.
All employees paid under Journey Employer Solutions’ payroll services can easily and quickly update their 2018 W-4 and Direct Deposit information themselves within their Journey HUB account. Journey HUB is free for all clients, though employers must enable this feature.
Will your net pay change drastically? Journey is recommending every single employee go through the steps of completing the new W-4 to ensure they are set up properly for their situation. With that being said, there are people in certain situations that will be more affected by these recent changes than others.
People in the following situations can expect the biggest changes:
• Family with two incomes
• Someone with two or more jobs
• Those who can claim a Child Tax Credit
• People who itemized deductions in 2017
• Someone with high income or more complex tax returns
As a reminder, these changes do not affect your 2017 tax return. In 2019, the IRS looks to make changes that will affect the withholding tables once again. As always, Journey Employer Solutions will be there to inform you on the changes that affect your employees Payroll and HR needs.