DES MOINES — Iowans are being reminded by the Internal Revenue Service that new tax laws mean new calculations for payroll taxes.
IRS spokesman Christopher Miller says Iowans should be sitting down with their tax returns and their paychecks this week in order to consult the IRS’s withholding calculator. Miller says, “The withholding tables also changed and that means that what’s being taken out of their paycheck may have changed and they need to be aware of that.”
Miller says the special Paycheck Checkup tool on the agency’s website will help you and your employer better tailor your withholdings under the new laws. Miller says, “You enter some information about your situation and it will help you understand whether or not the right amount for your particular situation is being withheld from your paycheck.”
The IRS is also asking Iowa businesses to look at their payroll and make sure employees are having the right amount of pay withheld. Miller says changes to the tax law means that the withholdings you might have been using over the last several years are insufficient. “If they received a smaller refund than they expected this year, or perhaps even if they had a tax bill that was unexpected, this will allow them to adjust their withholding,” Miller says.
Find the special Paycheck Check-Up page online at www.irs.gov .