At Red Wing Software, we know the importance of keeping payroll tax tables up-to-date. We make every effort possible to ensure you have the latest tax table information, in most cases even before they become effective. I read an article indicating one of the popular off-the-shelf payroll packages was touting that they would have the new federal withholding table available as early as mid-February. These tables were available in CenterPoint Payroll for our customers the very next day after they were published by the IRS. We also stay on top of the payroll tax changes in all states and territories, making sure our customers are using the most recent data.
While we keep the software updated, there are other things that need to be considered when it comes to proper withholding. Keep in mind that some employees may request additional withholding be taken each pay period based on their experience with previous years’ results. With the changes to the default tax tables, it may be important for them to recalculate the estimate of taxes they will owe for the year, and rethink the amount of extra withholding they have deducted. It’s a good idea to inform employees of this situation, and request they complete new W-4 forms if they would like to adjust their number of dependents or extra state or federal withholding.