How The New Tax Bill Affects Your Paycheck
You might have noticed a little extra money tacked onto your paycheck recently and wondered if someone in HR messed up or if you need to take another look at your withholdings.
What’s really going on is that the new tax laws, which most of us read about ad nauseam over the holidays, have kicked in as of January 1, 2018. The recent tax overhaul shifted much of our standard tax rules, including a change in tax brackets, increasing the standard deduction and reducing personal exemptions.
The IRS had to issue new tax tables in January, with employers directed to begin using them as of February 15. While it might seem initially exciting to get some extra cash in your pocket, there are a few things to consider in regards to the new tax laws before you start spending.