People who have received their first paychecks in 2018 might be wondering, “Where is that extra money I’m supposed to be seeing?”
It’s true that because of the Republican tax cut that went into effect Jan. 1, people are expecting less money to be withheld and more in their checks.
However, while the new withholding tables are out, the Internal Revenue Service says to expect to see the difference next month.
According to a press release on the IRS website (irs.gov), “Employers should begin using the 2018 withholding tables as soon as possible, but not later than Feb. 15, 2018. They should continue to use the 2017 withholding tables until implementing the 2018 withholding tables.”
Deborah Grandinetti, president of Payroll Providers in Santa Clarita, said she doesn’t have the new tables yet but expects them any day.
“Sometimes it’s just a matter of our payroll software updating the records, so we won’t know probably for a couple weeks what, if any, changes there will be to payroll,” she said in a voicemail.
The IRS said the time it will take for employees to see the changes in paychecks will vary, depending on how quickly employers implement the new tables and how often employees are paid, whether weekly, biweekly or monthly.
According to the IRS and Yahoo Finance, the amount of additional money people can expect to see in their checks ranges from an extra $6 in their checks, if they make $10,000 a year, to $1,362 if they make $1 million.
New IRS tax table – based on twice monthly pay periods
Annual income Net increase in take-home pay
(per pay period)
$1 million $1,362
Source: IRS, Yahoo Finance