The IRS recently issued Notice 2018-14 to provide more guidance on the withholding rules that were changed by the Tax Cuts and Jobs Act.
The notice:
- Extends the use of the existing 2017 Form W-4, Employee’s Withholding Allowance Certificate, to claim exemption from withholding for 2018 until the IRS can issue a new 2018 Form W-4
- Temporarily suspends the Sec. 3402(f)(2)(B) rule that employees must notify their employers of changes in status that affect their withholding within 10 days
- Provides the new rate of optional withholding on supplemental wages
- Provides that withholding on periodic payments (such as for annuities) under Sec. 3405(a)(4) when no withholding certificate is in effect is based on treating the payee as married and claiming three withholding allowances
The Journal of Accountancy provides a commentary of the notice. View it here>>>
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