SW Tax Tips: Withholding Checkup
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SW Tax Tips: Withholding Checkup


Christina thank you for joining me here
today to talk about why it’s a good idea to periodically check your wage
withholdings there’s been a lot in the news recently suggesting that employees
should check their withholdings as a result of the recent tax reform. Can
you tell me a little bit about why this is necessary and whether this applies to
all employees? So, with the tax reform, tax rates changed and as a result the IRS came out with updated withholding tables so yes I would say all employees should
do a withholding check up but in particular people in situations with
dual income earners people who are working part-time people who have
multiple jobs if you were previously itemizing on your tax return or if you
have complex tax situations it’s going to be especially important for you to do
the check up and make sure you have time to make any corrections if necessary. How do I check my withholding? You can go to the IRS website at irs.gov and use their withholding calculator you’re going to need to enter some
information from your most recent pay stubs as well as answer a few questions
related to your prior year tax filing and that will generate a report for you
that will make recommendations on any corrections needed Should I be concerned about entering my personal information online? No, you do not need to enter any personal information such as your name or social security number to use the calculator. And what are the tax consequences of not doing a check up?
you run the risk of either having a large refund at the end of the year or a
large tax bill at the end of the year in either situation is not ideal in the
case of a refund that would be money that you could have had in your pocket
throughout the year in the case of a large balance due you could be subject
to additional penalties. Does this apply to state withholding as well? The Act is
a federal only change so it will not impact your state taxes
or that withholding. Now I’ve done the withholding checkup and I’ve determined
that adjustments are necessary what would be the next steps? You’re gonna
want to complete an updated form w-4 and hand in to your employer either the HR
or payroll department and they will correct your withholdings going forward thanks Christina if you have any other questions please feel free to contact our office thank you

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