In: Accounting
Why is it important to understand the tax law changes that may affect withholding amounts?
It is critical that you are able to explain the reasons for the change in the outcome and to help taxpayers make adjustments accordingly.
It is critical to explain the withholding tables and exactly how they are computed.
Taxpayers always ask for your help with completing their Forms W-4.
To verify employers are withholding the correct amount of federal tax.
Solution:-
Why is it important to understand the tax law changes that may affect withholding amounts:-
To verify employers are withholding the correct amount of federal tax
Explanation:-
It is good practice for everyone to do an annual withholding check-up and this year is especially important with the changes in the tax law.
Again, there are changes in this new tax law that could affect your personal tax situation when you file your return in 2019. This year, it’s especially important to verify you are having the correct amount withheld as the law also changed the standard deduction, removed personal exemptions, increased the child tax credit, limited or discontinued certain deductions and changed the tax rates and brackets.
So, with the year more than halfway over, we urge you to do a “paycheck checkup” now to ensure that enough withholding is paid to avoid owing a balance due and possible penalties.