Redpath Insights

Optimize-Withholdings-with-a-Paycheck-Checkup-7-20-18

Optimize Withholdings with a Paycheck Checkup

by Heather Larson, CPP

We are over halfway into the 2018 tax year which has proved to bring big changes to the tax world. Have you had a change in circumstances? Or a big refund this year? To maintain a proactive approach for the 2018 tax filing season, and to keep the correct amount of money each pay period, the IRS is encouraging taxpayers to do a “checkup” on their federal income tax withholding through payroll.

Are Your Withholdings Just Right?

It is important to monitor withholding amounts to avoid an unexpected tax bill or penalty at the time of tax filing. Conversely, if you have too much withheld, that is money that won't be available to you until you get a refund at some future time. Too much or too little isn't what we want. Wouldn't it be nice to just have what is supposed to be withheld taken from your income? Click the link to see the recent IRS Publication. Also, if you are an employer you can share this with your employees to remind them to complete a Paycheck Checkup for the remainder of the year.

Here's the one-pager you can share with employees: https://www.irs.gov/pub/irs-pdf/p5303.pdf

And here's the IRS Withholding Calculator: https://www.irs.gov/payments/tax-withholding

Heather Larson, CPP

Heather Larson, CPP

Heather Larson, CPP is a payroll manager focusing on non-attest services including bookkeeping, compiled financials, liquor and sales tax, and 1099 filings. Most of her time is spent working with business owners on a day to day basis to maintain their books, and help with payroll record keeping and processing, and assisting with general business processes.