SCOTTSDALE, Ariz. (PRWEB) January 17, 2018
PaycheckCity, the paycheck calculator website serving nearly 10 million users each year, has released two tools to show how worker’s net pay will change from 2017 to 2018 under the Tax Cuts & Jobs Act. The first tool is a calculator (https://www.paycheckcity.com/calculator/dual/taxreform/) that, based on user input, will show a side-by-side comparison of the user's 2017 and 2018 paychecks, including exactly how much net pay will increase or decrease. The second tool is an interactive graph (https://www.paycheckcity.com/pages/tax-bill-calculator/) that demonstrates the difference between 2017 and 2018 federal tax for a range of annual salaries, filing statuses, and allowances.
The Tax Cuts & Jobs Act is a bill that amends the Internal Revenue Code to reduce tax rates and modify policies, credits, and deductions for individuals and businesses. Also known as the Trump Tax Cuts and the GOP Tax Reform, the bill will impact the tax liability of every single one of the 154 million wage earners in America. On January 11, 2018, the IRS released the new 2018 income tax withholding tables, which reflect changes made by the tax reform legislation. The IRS is urging employers to start using the new tax rates as soon as possible, but no later than February 15, 2018.
For American workers, this means that their 2018 paychecks may continue to look the same as their 2017 paychecks until mid-February. In the meantime, PaycheckCity’s Tax Reform Calculator and Tax Reform Graph can show workers exactly what their 2018 take-home pay will be and how much their taxes will change.
“When the government implements tax changes as seen in the Tax Cuts & Jobs Act, workers are eager to understand what it means for their personal situation and paycheck,” said Elizabeth Oviedo, chief strategy officer for Symmetry Software, owner of PaycheckCity. “We are excited to use our expertise in payroll taxes to hopefully ease the stress that comes from not knowing what your take-home pay will be in 2018.”
While many online publications have created calculators to show the general impact of the tax reform, PaycheckCity’s Tax Reform Calculator is the first to offer detailed paycheck scenarios. Users will be able to see the difference in their federal, state, and often local taxes from 2017 to 2018 based on their specific scenarios.
Here’s how the Tax Reform Calculator works: First, select the state of residence, then enter the gross pay and whether gross pay is annually or per period. After that, enter pay frequency. Federal Filing Status is next, followed by the number of allowances and any additional federal withholding. This information is found on a Form W-4. Complete the state and local information section next. Lastly, add any deductions that are included in the paycheck and their tax treatment. Finally, click calculate to see side-by-side results of the 2017 paycheck and 2018 paycheck along with a statement of how much the take-home pay will increase or decrease in 2018.
Here’s how the Tax Reform Graph works: To see the change in the amount of federal tax that will come out of 2018 paychecks, select the filing status from the Form W-4 (single or married) and the number of federal allowances claimed. Hover the mouse over the bar that corresponds to the approximate income level being investigated. Check the summary bar above the graph to see the impact the tax reform deal has on the federal taxes for the new year.
Oviedo offers the following advice on using PaycheckCity’s tools:
- The IRS has stated that the 2018 federal tax tables are designed to produce the correct amount of tax withholding for people with simpler tax situations. However, we recommend that Americans work with their tax advisers and monitor their paychecks closely to determine personal impact.
- The IRS has also stated that the 2018 federal tax tables are designed to work with worker’s current Form W-4s. However, they are also creating a new Form W-4 to reflect additional changes in the new law. For workers who wish to update their withholding in response to the new law or changes in their personal circumstances, we recommend using the 2018 Form W-4 as soon as the IRS releases it.
- The exact tax owed may be more or less than shown in PaycheckCity’s calculator and graph, based on tax deductions one qualifies for or any other specific issues relative to a personal tax situation.
See exactly what your take-home pay will be in 2018 with our Tax Reform Calculator (https://www.paycheckcity.com/calculator/dual/taxreform/) and Tax Reform Graph (https://www.paycheckcity.com/pages/tax-bill-calculator/).
PaycheckCity has been the go-to paycheck calculator for tens of millions of Americans since 1998. Powered by the Symmetry Tax Engine, PaycheckCity provides free, accurate paycheck calculations to individuals, small businesses, and payroll professionals. Today, the website handles 45 million calculations for 9.7 million users each year. PaycheckCity’s paid offering PaycheckCity Profiles launched on January 1, 2018, and offers a number of additional features.
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