Impact of the New Tax Law on Your Paycheck
In early January, the Internal Revenue Service (IRS) released updated income tax withholding tables for 2018 based on the new tax reform law. These tables are used by employers to determine how much federal income tax to withhold from employees’ paychecks.
The updated tables will result in changes to the amount of federal income taxes withheld from your paycheck. For MIT’s monthly-paid employees, the change will first take effect in the January 31, 2018, paycheck; for MIT’s weekly-paid employees, the change will first take effect in the February 2, 2018, paycheck.
The IRS has indicated that the 2018 withholding table will work with employees’ existing W-4 tax withholding form. The IRS has not yet released the 2018 W-4 tax withholding election form and IRS online tax withholding calculator, though both are expected in late February. Once the 2018 W-4 tax withholding election information is available, the IRS advises all taxpayers to review their tax withholding elections to determine if they need to adjust their withholding elections by updating the W-4 form on file with their employer.
All MIT employees can adjust tax withholding elections online via Atlas. (Go to Atlas, About Me and choose Tax Withholding from the menu on the left.)
You can learn more about tax withholding and the new tax law by reviewing the IRS website FAQ.
If you have questions, please contact email@example.com.