Check Your Paycheck!
Following the biggest set of tax law changes in more than 30 years, the Internal Revenue Service continues to remind taxpayers to do a Paycheck Checkup to help make sure they are having the right amount of tax withheld.
The Tax Cuts and Jobs Act (TCJA), tax reform legislation enacted in December 2017, changed the way tax is calculated for most taxpayers. By visiting the IRS Withholding Calculator, available on IRS.gov, taxpayers can make adjustments following recent tax laws that may affect them, including the larger standard deduction, the increased Child Tax Credit or Other Dependent Credit.
Most TCJA changes took effect in 2018 and, for most taxpayers, affected the return they filed earlier this year. Those changes will also apply to 2019 tax returns filed in early 2020.
The Withholding Calculator enables taxpayers to get their tax withholding right by making sure these and other tax changes are built into their take-home pay. Taxpayers enter their deductions and credits into this handy online tool, and estimate income from other sources, such as jobs their spouses hold, bank interest, second jobs and gig-economy work.
Taxpayers should also check their withholding any time they have a major life change, such as getting married, getting divorced, having a baby, adopting a child, buying a home, retiring or starting college. Anyone who needs to make a withholding change should do so as soon as possible. This way if a tax withholding adjustment is needed, the amount of tax that needs to be withheld can be spread across more paychecks remaining in the year. Waiting means the remaining tax owed will need to be withheld from fewer paychecks so more will have to be taken from each one.
To find out more information, visit the Withholding Calculator, available on IRS.gov.
To update your Tax Setup log into Paycom Self Service and select Payroll then Tax Setup.
Please contact the Payroll Department at email@example.com with any questions.