You may have recently heard news reports that many Americans may not be withholding enough taxes following the new federal tax cuts. The new tax law increased the standard deduction, removed personal exemptions, increased the child tax credit, limited or discontinued certain itemized deductions, and changed the income tax rates and brackets which may affect your income tax liabilities.
There’s still time to review and make changes to your tax withholdings for this tax year. If you’re not sure if you should or not – you should. The sooner the better.
Withholding takes place throughout the year. If you need to adjust your withholding, doing so as quickly as possible means there’s more time for tax withholding to take place evenly during the rest of the year.
How much you should withhold depends on your individual circumstances. You can use the online IRS Withholding Calculator and the 2018 Federal Income Tax Withholding Tables to ensure you have the correct tax amount withheld each payday. The IRS even has a Withholding Calculator FAQs pageand an IRS Withholding Table FAQs to further assist you.
If you need to increase or decrease your federal tax withholdings, simply log on to PeopleSoft Employee Self-Service to access your W-4. For further assistance, you can find step-by-step instructions in the Employee Self Service Desk Aid.