IRS Encourages a ‘Paycheck Checkup’

The Internal Revenue Service (IRS) has published an early release draft of Form W-4 (Employee’s Withholding Allowance Certificate) (as of June 5, 2018). The draft incorporates changes resulting from the tax code reform enacted last year, which changed the way tax is calculated for most taxpayers. The IRS encourages all employees to do a ‘paycheck checkup’ by using its online withholding calculator, which will recommend the number of allowances an employee should claim. Employers should expect requests from employees to submit revised W-4 and HW-4 forms; any changes, however, must be filed using current W-4 forms (draft forms cannot be filed). A revised draft or final Form W-4 is likely to be released soon.