IRS Extends W-4 Effective Period and Provides Optional Withholding Rate
The Internal Revenue has issued guidance on withholding rules Notice 2018- 14
- The notice extends the effective period of Forms W-4 furnished to claim exemption from income tax withholding under section 3402(n) for 2017 until Feb. 28, 2018 and temporarily permits employees to claim exemption from withholding under section 3402(n) for 2018 by using 2017 Form W-4
- Suspends the requirement that employees must furnish their employers new Forms W-4 within 10 days of changes of status resulting in fewer withholding allowances
- Provides that the optional withholding rate on supplemental wage payments is 22 percent for taxable years 2018 through 2025, and (4) provides that, for 2018, withholding on annuities or similar periodic payments where no withholding certificate is in effect is based on treating the payee as a married individual claiming three withholding allowances under section 3405(a)(4)
Download the IRS Notice Notice 2018- 14
Source: IRS | 2018 © Copyright Payroll Masters
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