Staff News: Impact of the Tax Cuts and Jobs Act
President Trump signed into law the Tax Cuts and Jobs Act. This legislation will impact the amount of federal income tax that is withheld from your paycheck. In general, the impact of this legislation is to reduce the amount of federal income tax withheld from your paycheck, thus increasing your net pay.
The Internal Revenue Service has released the new federal income tax withholding tables for 2018. These new tables will be used beginning with your Feb. 5, 2018, paycheck. The impact of this tax change will vary by individual, depending on your income, filing status (single or married), the number of withholding allowances you claim, etc. The Iowa state income tax withholding formula is based in part on the amount of federal income tax that is withheld from your paycheck. If your federal income tax withholding decreases, you will likely see a slight increase in the amount of state income tax withholding.
If you have any questions, contact Linda Rippentrop, payroll coordinator, at email@example.com or ext. 5083.