The Tax Cuts and Jobs Act was signed into law on Friday, December 22. The IRS is currently developing initial guidance for the new law and has instructed employers to continue using the 2017 withholding tables until the updated 2018 tables are issued, which is expected to be sometime in February of 2018.
In the meantime, the IRS has emphasized that their guidance will be designed to work with employees’ existing Forms W-4 that have already been filed and that no further action is required by taxpayers at this time. In other words, employers should not need to collect new W-4s from employees who do not wish to update their withholding.
How individuals may choose to update their withholding in light of the new regulations is a decision that should be made by the individuals with guidance from their tax advisor.
HKP will continue to provide updates as more relevant information becomes available. You may also monitor the IRS newsroom at https://www.irs.gov/newsroom/irs-statements-and-announcements.