Congressman Brian Fitzpatrick cited the new tax reform law and new withholding tables when announcing most working Americans will see a 90 percent increase in their take-home pay next month.
Last week, the Internal Revenue Service released an update of the income-tax withholding tables for 2018 reflecting changes made by the tax reform legislation passed last month.
This is the first in a series of steps the IRS will take to help improve the accuracy of withholding following major changes made by the new tax law. The time it will take for employees to see the changes in their paychecks will vary depending on how quickly the new tables are implemented by their employers and how often they are paid — generally weekly, biweekly or monthly.
In 2019, the IRS anticipates making further changes involving withholding. The IRS will work with the business and payroll community to encourage workers to file new Forms W-4 next year and share information on changes in the new tax law that impact withholding. -PW