IRS Rolls Out New Income-Tax Withholding Guidelines

MIAMI, FL - DECEMBER 22:  A copy of a IRS 1040 tax form is seen at an H&R Block office on the day President Donald Trump signed the Republican tax cut bill in Washington, DC  on December 22, 2017 in Miami, Florida. Kathy Pickering, vice president of regulatory affairs and executive director of The Tax Institute at H&R Block released a statement about the new tax bill saying, " ItÕs going to change the way you think about and plan your income taxes. YouÕll need to take a fresh look at your individual situation to know your outcome and new strategies to use to get the best tax outcome.Ó  (Photo by Joe Raedle/Getty Images)
Joe Raedle/Getty Images North America

The Internal Revenue Service is making changes to the guidelines that help workers determine how much of their paycheck is withheld by their employer as income taxes.

The IRS rolled out new income-tax withholding tables Thursday as it begins to adapt to changes in the tax law enacted last month.

The guidelines require employers to use new withholding tax rates no later than Feb. 15.

Individual taxpayers aren’t required to make any changes right now.

Later this year, the IRS expects to revise the Form W-4, which employees use to ultimately determine how much of their pay is withheld toward income taxes.

The IRS also plans to release a new withholding calculator to help individual taxpayers determine the correct amount of withholding by the end of February.

Comments