The Internal Revenue Service (IRS) has released Notice 1036, updating the income-tax withholding tables for 2018. The new tables reflect changes made by the tax reform legislation enacted last month. The updated withholding information shows the new rates for employers to use during 2018.
Employers should begin using the 2018 withholding tables as soon as possible, but no later than February 15. The IRS is revising the Form W-4, however, until the new Form W-4 is issued, employees and employers should continue to use the 2017 Form W-4. The new withholding tables are designed to work with the employee Forms W-4 currently on file with employers.
Employers can find more information in the Withholding Tables Frequently Asked Questions on the IRS website.