IRS Conducts Weeklong ‘Paycheck Checkup’ Campaign
The IRS encourages employers to remind employees to complete a Paycheck Checkup during its weeklong summertime campaign, August 13-17, 2018. This is the second Paycheck Checkup effort the IRS has conducted to ensure employees have the proper amount of tax withheld due to changes made by the Tax Cuts and Jobs Act (Pub. L. 115-97).
Employees who check and adjust withholding now can prevent an unexpected tax bill and penalties next year at tax time. It can also help employees avoid a large refund if they would prefer to have their money in their paychecks throughout the year. The IRS said “this summertime check on tax withholding is critical for millions of taxpayers who haven't reviewed their tax situation.”
During this Paycheck Checkup reminder week, the IRS said it will spotlight a variety of tools, including its withholding calculator, “to help taxpayers learn if they need to make changes soon to avoid an unwelcome surprise come tax time.”
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!