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New Federal Withholding Tables

The 2018 federal withholding tables, which were issued later than usual due to enactment of the Tax Cuts and Jobs Act (the Act), must be used beginning Thursday, Feb. 15, 2018. That is also the deadline for changing the optional flat rate for withholding on supplemental wage payments of $1 million or less (bonuses, commissions, etc.) from 25% to 22%.

On Jan. 11, 2018, IRS announced that it released Notice 1036, Early Release Copies of the 2018 Percentage Method Tables for Income Tax Withholding, which updates the income tax withholding tables for 2018 to reflect changes made by the Act.

The 2018 federal withholding tables are in IRS Publication 15.

IR 2018-5 instructed employers to begin using the 2018 withholding tables as soon as possible, but not later than Feb. 15, 2018.

The new withholding tables are designed to work with the Forms W-4 that workers have already filed with their employers to claim withholding allowances.

Do not hesitate to contact us (712-328-2600) with any questions.

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