Question: When will the IRS issue revised tax withholding tables for our employees’ paychecks?

Answer: According to a statement issued by the Internal Revenue Service (IRS), the agency is currently working on the new withholding tables to accompany the new tax rates that are part of the tax reform bill signed into law on December 22, 2017. They anticipate issuing the initial withholding guidance in January, and employers and payroll service providers can implement the changes in February.

Until the new rates are published, employers should continue to use the existing 2017 withholding tables and systems.

As for new W-4 forms, the IRS indicates that the new information will be designed to work with the existing Forms W-4 that employees have already filed, and employees will not be required to complete new Forms W-4. Many employees, however, will want to complete a new Form W-4 to have more money in their paycheck due to the reduction in federal payroll taxes with the new law.