HR Alert

IRS Releases Additional Guidance on Form W-4 Compliance for 2018

Release of 2018 Form W-4 Forthcoming

The Internal Revenue Service (IRS) has released additional guidance on Form W-4 compliance in response to the enactment of the Tax Cuts and Jobs Act, which was signed into law by President Trump in December 2017. Highlights of the guidance are as follows:

  • While the IRS is currently working to revise Form W-4 to reflect changes made by the Tax Cuts and Jobs Act, the 2018 Form W-4 may not be released until after February 15, 2018. However, the agency designed the 2018 withholding tables in IRS Notice 1036 to work with the Forms W-4 that employees have already furnished their employers.
  • New hires may continue to claim allowances by using the 2017 Form W-4 until 30 days after the 2018 Form W-4 is released.
  • Employees experiencing a change in status that causes a reduction in the number of withholding allowances are not required to furnish employers new withholding allowance certificates until 30 days after the 2018 Form W-4 is released.
  • Employees who have a reduction in the number of withholding allowances solely due to the changes made by the Tax Cuts and Jobs Act are not required to furnish employers new withholding allowance certificates during 2018.
  • Employees may update their withholding at any time in response to the Tax Cuts and Jobs Act. Employees who choose to update their withholding may use the 2017 Form W-4 instead of the 2018 Form W-4 to report changes in withholding allowances until 30 days after the 2018 Form W-4 is released.

Click here to read the additional guidance in its entirety.


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