New tax rates will be effective by February 15, 2018.
As we reported last month, tax reform has been signed into law with provisions that include adjusted tax withholding tables.
The IRS released Notice 1036 with updated tables for individual tax withholding.
To maintain compliance with these new regulations, the new tax withholding formulas will become effective by February 15, 2018. All paychecks on or after February 1 will be calculated using these new tables.
Your next steps:
- Review these tax tables carefully to determine what the change to your personal withholding might be.
- Log into your Nextep account to review your paystub.
- Submit changes to your tax withholding to Nextep as needed. Here’s how.
While Nextep is unable to offer tax advice, the IRS offers a tax withholding calculator that may be of assistance. You may also consider contacting your financial advisor for further guidance.