At this time, employers should, at a minimum, have all new hires and any employee that has a change in their tax status, complete the new 2018 W-4
The Tax Cuts and Jobs Act (“the Act”) has several provisions that impact payroll, employment tax, and employee benefits. In accordance with these changes, the IRS released new withholding tables, as well as a new W-4 (available at irs.gov). Although the IRS is not requiring employers have their entire workforce (hired before March 30, 2018) complete the new W-4, as of February 15, 2018, employers are required to begin withholding from employee wages based on new withholding tables.
At this time, employers should, at a minimum, have all new hires and any employee that has a change in their tax status, complete the new 2018 W-4. Further, if employers are not requiring all employees to complete new forms, employers should at least encourage their employees to review their with holdings, as the Act eliminated certain exemptions and allowances. As a result, some employees’ allowances may be overstated, resulting in under-withholding for the year. If employees want to submit a new W-4, they should be allowed.
Jennifer Fowler-Hermes is a board certified expert in labor and employment law. She is also a Florida Supreme Court certified circuit mediator. She represents private, public, for-profit, and not-for-profit employers in a variety of industries, such as healthcare, education, manufacturing, construction, performing arts, and hospitality. Jennifer not only represents both large and small employers in litigation matters, but she also assists employers in managing risks to avoid litigation. Jennifer is a frequent lecturer and author on labor and employment law topics. Additionally, she serves as editor of The Williams Parker Labor & Employment Blog (williamsparker.com/LEBlog), which focuses on the latest trends and developments pertaining to labor and employment law and provides commentary and analysis regarding best practices for employers, human resource professionals, C-level executives, and boards of directors. She can be reached at [email protected] or (941) 552-2558.