Idaho and New Mexico Issue Revised Withholding Tables
States continue to revise their withholding tables in response to the federal Tax Cuts and Jobs Act (Pub. L. 115-97). Previously, Idaho issued revised withholding tables in April. The Idaho State Tax Commission (STC) recently revised the tables again as of May 31, 2018, and plans to revise the tables again this month. The New Mexico Taxation and Revenue Department (TRD) has also issued revised withholding tables.
Although the revised wage-bracket and percentage method withholding tables are effective from January 1, 2018, employers do not need to adjust employees’ withholding for the months before the new tables were published [STC, Pub. EPB00006, A Guide to Idaho Income Tax Withholding, rev. 5-31-18].
Key changes to this version of the withholding guide include: changes to the calculation in the percentage computation method (see page 20) – the employer’s requirement to “add 2” was eliminated, and revisions to the wage-bracket withholding method tables for single filers (beginning on page 26). According to the STC, the withholding guide will be updated one more time this month.
The TRD recently posted revised wage bracket and percentage method withholding tables. The tables were revised as of May 2018, but are effective for wage paid on or after January 1, 2018.
Employees are advised by the TRD that, “You should use the right number of withholding allowances even though the federal changes will not allow a personal exemption amount when you file your 2018 income tax return” [TRD, FYI-104, New Mexico Withholding Tax Effective January 1, 2018, rev. 5-2018].
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