I was struck last night that within this awesome tax cut bill, they didn’t make plans on how to update w-2 forms so payroll companies/small businesses don’t have a clue how to implement in 12 days.
@miklb Are the changes going into effect for tax year 2017? Or does it start for 2018?
@Bruce 2017 is what is being advertised.
@Ron withholding changing since basically doing away with deductions and going to fixed standard. So all of the current forms and charts for how to declare/withhold hasn’t been figured out or produced.
@Ron doing away with exemptions I mean.
@miklb The W-2’s in Jan 2018 report income & deductions earned in 2017. The tax law has NO impact on that, what was earned does not change. Any changes for 2018 for going forward only effect the W-4 form, which is an estimate and can be adjusted throughout the year. No problem!
@Ron got my forms messed up. Have been 1099 for too long. Thanks for clarification. Yes estimate, but if you are selling people their next check is going to show more but no one knows how to update withholding…
@miklb Okay, the bill is now law. IRS will issue new tax rates in Feb. You will likely be overwithheld for 2018 before that. Read section titled February 2018.
@miklb What in the tax bill would have any effect on W-2 forms?