Seasonal Worker Tax Changes
Business owners should encourage seasonal staff to visit the Withholding Calculator on IRS.gov soon to do a “paycheck checkup in light of the seasonal worker tax changes.”The Tax Cuts and Jobs Act made major changes to the tax law, which could affect how much an employee needs to have their employer withhold from their pay.
The calculator asks about the dates of employment and accounts for a part-year employee’s shorter employment rather than assuming that their weekly tax withholding amount would be applied to a full year. If the calculator results suggest the employee needs to change their withholding, the employee should complete a new Form W-4 and submit it to their employer as soon as possible.
Additional Details are available in the May 9, 2018 IRS news release: Seasonal, part-year workers urged to check tax withholding amount.
For more information, contact Kerry Steenburgh at The Flanders Group 800-462-6435.