Faculty and staff may remember that new federal payroll tax withholding tables were implemented in February 2018 due to the Tax Cut and Jobs Act passed last December. Subsequent to the release of the new withholding tables, the IRS made available a revised 2018 Form W-4 and an updated IRS Withholding Calculator.
As the Controller’s Office communicated in March, while employees are not required to take any additional steps regarding your taxes at this time, the IRS does strongly encourage taxpayers to review their withholdings using the tax calculator. The calculator has been updated for many federal tax changes that will likely impact 2018 and later income taxes, and this review will help you determine if your federal withholding tax is optimal based upon your own personal tax circumstances. Individuals who fall into one or more of the situations below are encouraged to revisit their federal withholding amounts:
- Have two incomes or are in two-income families.
- Work only part of the year.
- Have dividends or capital gains from securities held in taxable accounts.
- Claim the Child Tax Credit, the Earned Income Tax Credit or other credits.
- Itemized deductions prior to 2018.
- Traditionally have more complex tax returns.
Please consider using the IRS Withholding Calculator to check your withholdings now to allow ample opportunity to make adjustments to your withholdings between now and the end of each year. To utilize the calculator, you will need a copy of your tax returns along with information from your most recent pay statement.
If you determine that you need to change your withholdings, you can do so by updating your W-4 information. Simply log into InsideND, search for “W-4” and follow the instructions provided. Please feel free to contact Payroll Services at 631-7575 if you have any questions about accessing this information or information regarding your pay. Concerned employees are encouraged to consult with their tax advisor for any other additional information as the University cannot offer personal tax advice.
Originally published by evp.nd.edu on August 01, 2018.at