The IRS has completed updating its online withholding calculator that individual taxpayers can use to determine how many withholding allowances they should claim for 2018. The IRS also issued a new 2018 Form W-4, Employee’s Withholding Allowance Certificate. Download the new form at www.irs.gov/pub/irs-pdf/fw4.pdf (PDF) and use the calculator at www.irs.gov/individuals/irs-withholding-calculator.
The new calculator and Form W-4 are designed to implement the changes made by the Tax Cuts and Jobs Act, passed at the end of 2017, which increased the standard deduction, removed personal exemptions, increased the child tax credit, limited certain other deductions and changed the tax rates and brackets.
All employees are strongly encouraged to review and submit a new Form W-4 in ADP, if necessary, in order to avoid possible over or under withholding for 2018. To update your W-4 in ADP, login and go to: Myself/Pay/Tax Withholdings then click the “Edit” buttons.