Employers, have you reminded your employees to check that they are having the right amount of tax withheld from their paychecks? With more than half of 2019 behind us, it’s a good idea for everyone to check their payroll withholding to make sure they will not have a big tax bill – and possible penalties – when they file their 2019 return next April. Other employees may be having too much withheld from their pay and, although that can mean a nice refund next year, they may prefer to take home more pay now.
Help your employees avoid being surprised next spring when they prepare their 2019 returns. Remind them now to check their year-to-date withholding so they can make adjustments, if appropriate, on their paychecks for the rest of this year. It’s easy and convenient using an online tool provided by the IRS.
Here is a sample message to employees:
The IRS encourages everyone to use the Tax Withholding Estimator to perform a quick “paycheck checkup” to help make sure you have the right amount of tax withheld from your paycheck at work.
The Estimator helps you determine whether you need to give your employer a new Form W-4, Employee’s Withholding Allowance Certificate (PDF). You can use your results from the Estimator to help fill out the form and adjust your income tax withholding going forward.
To get started, gather your most recent pay stubs and a copy of your last federal tax return (2018 Form 1040). The Estimator will ask you to estimate values of your 2019 income, the number of children you may claim for the Child Tax Credit and Earned Income Tax Credit, and other items that will affect your 2019 taxes. This process will take a few minutes.
The Estimator does not ask you to provide sensitive information like your name, Social Security number, address or bank account numbers. The IRS does not save or record the information you enter on the Estimator.
Ready to start? Tax Withholding Estimator.
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Source: ThinkHR
