IRS Withholding Calculator helps find the right amount of tax to withhold

A tool from the IRS helps you find the right amount of tax to withhold from your paycheck. According to a recent IRS Newswire bulletin, taxpayers should have a Paycheck Checkup to help you see if you’re withholding the right amount of tax from your paycheck and avoid any unexpected tax bills or penalties.

Since the new tax reform legislation was passed in December 2017, some people received refunds that were larger or smaller than expected, while others unexpectedly owed additional tax. The Withholding Calculator will recommend the number of allowances you should claim on your Form W-4. In some cases, it may recommend that you withhold an additional flat-dollar amount from each paycheck. 

If the Withholding Calculator suggests a change, you should change your withholdings in Workday as soon as possible.

The IRS recommends checking your withholdings any time you have a major life event, such as getting married or divorced, having or adopting a child, buying a home, retiring, or starting college.

If you have questions about your withholding or your paycheck contact HR/Payroll Support.