The New Law and Withholding for 2018
The IRS has announced that it expects to issue withholding guidance in January for the 2018 tax year, to reflect the new tax law. In the meantime, the IRS has instructed employers to continue using the 2017 withholding tables and systems until further notice.
The new tax law, which was enacted on December 22, 2017, changes income tax rates for individuals starting in 2018; it also changes the rules for deductions and credits for dependents.
The IRS has also announced that, when it issues the new withholding guidance for 2018, the guidance will be designed to work with the existing Forms W-4 that are already in place for employees. As a result, employees are not expected to be required to sign new withholding forms for 2018 tax year.