Sixty-eight percent of employees are not sure how the Tax Cuts and Jobs Act (TCJA) will impact their finances, according to the 2018 “Getting Paid In America” survey conducted by the American Payroll Association.
“With recent changes to tax laws, it’s more important than ever that employees review their current tax withholding,” said Dan Maddux, executive director of the APA. “Employees should take a close look at their withholding status to ensure they’re getting the most out of each paycheck.”
The annual APA survey asked, “Do you feel like you have a clear understanding of the impact the Tax Cuts and Jobs Act will have on your finances when you file your 2018 tax return next year?” Sixty-eight percent of respondents indicated they did not.
Despite not fully understanding the impact of the TCJA, over fifty-seven percent of participants also indicated they had either never heard of the IRS’s Withholding Calculator or would not be using it to ensure enough federal income tax is being properly withheld from their paychecks. The IRS’s Withholding Calculator can help employees determine proper withholding for Form W-4 and is available at nationalpayrollweek.com/npw-tools/.
“Not many are utilizing the IRS Withholding Calculator to check their own personal withholding – and even more don’t know they’re under withholding taxes on their paychecks! Not knowing your own personal withholding can not only be detrimental to your company but your own finances,” said Judy Brooke-Gomez, director of tax research and support at Symmetry Software. “With paycheck and W-4 calculators easily available online, there’s no reason not to double check that your own withholding is accurate.”
On its National Payroll Week website, the APA offers educational resources and quick access to paycheck calculators to help individuals better understand their paychecks and how they can make simple adjustments to how they’re being paid.
The “Getting Paid In America” survey was held in conjunction with the APA’s annual public awareness campaign National Payroll Week, September 3-7. Over 34,000 individuals responded to the survey, providing insight into how employees are paid in America. For complete survey results and paycheck tools, visit nationalpayrollweek.com.
