The Tax Cuts and Jobs Act (the Act), P.L. 115-97, signed into law on Dec. 22, 2017, required the Internal Revenue Service and the Treasury department to update guidance regarding the employer withholding. As a result, the following publications have been released:
Updates were also made to the IRS Withholding Tables’ frequently asked questions, available here.
Since many financial institutions disperse supplemental wages at this time of year, please note the flat rate option on withholding for these items was reduced from 25 to 22 percent, as referenced in Notice 1036.
Please take time to become familiar with the new guidance. Contact your tax advisor or a member of the DHG Financial Services practice for more information.
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