Employers Should Urge Employees to Review Paycheck Withholding
Experts are urging employers to use W-2 season as a time to advise employees to review their paycheck withholding and submit a new W-4 form.
The Society for Human Resource Management (SHRM) cautions that changes under the Tax Cuts and Jobs Act may cause employees to find they under-withheld for 2018, resulting in an unexpected tax bill.
According to the IRS, those most at risk of having too little withheld from their pay include:
- Taxpayers who itemized in the past but now take the increased standard deduction.
- Two-wage-earner households.
- Employees with nonwage sources of income.
- Those with complex tax situations.
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The information included in this blog post originally appeared in an article from the Society for Human Resource Management (SHRM) on January 29, 2019, written by Stephen Miller, CEBS.