WVU employees will notice a change in their federal income tax withholding beginning on their Feb. 2 paycheck. The Internal Revenue Service has updated the income-tax withholding tables for 2018, reflecting changes made by the tax reform legislation enacted in December 2017. As per the IRS, employers were to continue withholding using the 2017 tax tables until the updated 2018 tables were made available.
These updates were provided by the IRS mid-January, and WVU employees will see the change beginning on their Feb. 2 pay. This is the first in a series of steps that the IRS will take to help improve the accuracy of withholding following major changes made by the new tax law.
The new tables reflect the increase in the standard deduction, repeal of personal exemptions and changes in tax rates and brackets. For taxpayers with simpler tax situations, the new tables are designed to produce the correct amount of tax withholding. The revisions are also aimed at avoiding over- and under-withholding of tax as much as possible.
Taxpayers who have more complicated tax situations, for example those who itemize their deductions, couples with multiple jobs or individuals with more than one job a year, will be encouraged to review their tax situations. The IRS is in the process of updating the 2018 Form W-4 and the IRS.gov withholding calculator. The IRS and WVU Tax Services encourage employees to check their withholding once these tools are available at the IRS website.
Many employees will see increases in their take-home pay due to a decrease in the federal income tax withheld based on the new tax withholding tables. The new withholding tables are designed to work with the W-4 forms that employees have already filed with their employers to claim withholding allowances. This will minimize the burden on employees and employers. Employees do not need to do anything at this time or fill out a new W-4 form unless they choose to do so, but they are encouraged to review their personal tax situation.
For more information visit the FAQ page on the IRS website or the updated 2018 withholding tables news release.