The tax reform bill approved by Congress will take effect January 1, 2018, and your paycheck will be affected, but at this point, you may have to wait until February to see the change.
The IRS is currently working on implementing this tax legislation so federal tax withholding tables will not be released until sometime in January, with an effective date as early as February 1. However, until everything is updated, the 2017 withholding tables (as well as the 2017 W-4 form) will continue to be in effect. In the interim employers and payroll administrators will need to wait for guidance from the Internal Revenue Service before any action is taken.
See the current IRS statement here.
If you need further information for you or your business, please contact Michael D. Machen, CPA, CVA at (334) 887-7022 or by leaving us a message below.
