The Tax Cuts and Jobs Act (the “Tax Act”) significantly changed the federal income tax rules.  Several of these changes impact income tax withholding, including changes to the tax rates and brackets, increasing the standard deduction, and eliminating personal exemptions.

Normally, employees must provide their employers with an updated Form W-4 within 10 days of a change in their personal circumstances that affects their withholding.  However, the IRS in Notice 2018-92 gave employees a temporary reprieve from this 10-day rule when their withholding changed solely as a result of the Tax Act.  In these circumstances, employees must update their Form W-4 within 10 days of April 30, 2019 – or by May 10, 2019.

With the 2018, individual tax filing season in the rearview mirror, now is a great time to remind employees about the requirement to update their Form W-4 and to encourage them to take advantage of the IRS withholding calculator to determine if updates are needed.  The IRS withholding calculator is available here.

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Photo of Suzanne G. Odom Suzanne G. Odom

Suzanne G. Odom is a principal in the Greenville, South Carolina, office of Jackson Lewis P.C. She focuses her practice on ERISA plans, employee benefits, and executive compensation matters.

Sue has worked extensively with all types of employer-sponsored retirement and welfare benefit plans…

Suzanne G. Odom is a principal in the Greenville, South Carolina, office of Jackson Lewis P.C. She focuses her practice on ERISA plans, employee benefits, and executive compensation matters.

Sue has worked extensively with all types of employer-sponsored retirement and welfare benefit plans, including pension, profit sharing, 401(k), 403(b), and 457(b) plans, ESOPs, and health, accident, disability, Section 125, flexible spending, and other welfare plans. Her clients include large and small for-profit companies across all industry sectors, non-profit corporations, and governmental entities.

As a result of Sue’s vast number of submissions and compliance matters, she has developed a close and professional working relationship with both the IRS and Department of Labor Representatives. Her practice is centered on providing her clients with solid and proactive fiduciary and business advice that assists them in avoiding the time and expense of employee benefits litigation.

Sue prides herself on her ability to think outside the box and work with clients to deliver the best business solutions possible.