A recent article from SHRM offers a good reminder for HR departments to help employees review and adjust their paycheck withholdings with new tax laws in effect. A recent article from SHRM offers a good reminder that tax time is a good opportunity for HR departments to advise employees to review and adjust their paycheck withholdings for the next year.
The Tax Cut and Jobs Act, which went into effect in 2018, could impact employees in a variety of different ways, with previously popular deductions no longer available and lower tax rates. Employees may find they withheld too much or too little money from their paychecks.
According to the IRS, those most at risk of having too little withheld from their pay include:
- Taxpayers who itemized in the past but now take the increased standard deduction
- Two-wage-earner households
- Employees with nonwage sources of income
- Those with complex tax situations
For more information, check out the SHRM website.