IRS Creates ‘Paycheck Checkup’ Flyer
The IRS created a one-page flyer employers can give to employees to remind them to complete a Paycheck Checkup so they will not receive an unexpected tax bill or penalty at tax time [IRS, Publication 5303, Paycheck Checkup, rev. 6-18, posted 7-12-18].
The publication reminds employees to use the IRS’s withholding calculator to complete the Paycheck Checkup. Employees who use the withholding calculator can determine if they need to submit a new Form W-4, Employee’s Withholding Allowance Certificate, to their employer. Employees should keep in mind that the accuracy of the calculator’s results depend on the information they enter. The IRS suggests that employees have their most recent pay statement and federal income tax return on hand when using the calculator.
Who Should Check Their Withholding?
The IRS encourages everyone to check their withholding. However, the IRS said checking withholding is more important for employees if they:
- Are a two-income family
- Have two or more jobs at the same time
- Work a seasonal job or only work part of the year
- Claim credits like the child tax credit
- Have dependents age 17 or older
- Itemized deductions on their 2017 returns
- Have high income or a complex tax return
- Had a large tax refund or tax bill for 2017
To learn more about federal and state laws, regulations, and information to keep your company's payroll operations in compliance, check out Payroll Source Plus!