It is Time for a Paycheck Checkup
The Internal Revenue Service has released the news regarding the revised W4 for 2019. Along with the release, the IRS is urging taxpayers to review their 2019 tax withholding using the IRS Withholding Calculator and make any changes to their W4 if necessary. The IRS recommends everyone do a Paycheck Checkup as early in the year as possible.
If your findings require you to adjust your tax withholding, the amount of tax to be withheld can be spread across remaining paychecks in the year. As a TCU employee, you will need to log in to my.tcu.edu, under the Payroll Tile click the W4 Tax Information link.
Attached are a list of commonly asked questions and answers regarding payroll and withholdings. Additional information is available on the IRS website, including the Withholding Tables and the Withholding Calculator, which you may use to ensure you are withholding the correct amount for federal taxes.
For more details, see these IRS sites:
How are payroll taxes calculated?
- The IRS and state agencies publish annual tables to determine the amount of tax to be withheld from each paycheck, depending on the employee’s gross wages, filing status (married or single), number of withholding allowances (exemptions) and pay frequency. The Tax Cuts and Jobs Act reduces the tax rate for taxable income as outlined in its tables.
How do I know if I am withholding enough for federal taxes?
- The IRS allows a number of exemptions (withholding allowances), including one exemption for yourself, one for your spouse and one for each dependent child your report—the number of exemptions claimed on your W-4 form directly affects the amount of tax withheld from your pay.
- The IRS provides a Withholding Calculator to help you determine proper withholdings.
- TCU provides a paycheck modeler to help you calculate a hypothetical paycheck by changing your earnings, deductions or tax withholding status. Visit my.tcu.edu, select the Payroll icon and paycheck modeler to access.
- We encourage you to contact a tax accountant or financial planner to reduce your taxable income and ensure proper withholdings.
How can I reduce my federal taxable income?
- There are defined ways to reduce your taxable income: reduce your income (contribute to a 403(b) or similar retirement plan), increase your deductions or utilize tax credits/increasing your withholdings, as appropriate. We encourage you to contact a tax accountant or financial planner to discuss how to reduce your taxable income and ensure proper withholdings.
What if I want to change my withholdings for 2019?
- If a change is necessary, go to my.tcu.edu, click the Payroll icon, complete the W-4 Tax Information form and click Submit.
Who do I contact if I have questions?
The Human Resources Payroll Office is available to answer questions at firstname.lastname@example.org. TCU Human Resources employees are neither certified tax accountants nor financial planners and, as such, are do not provide tax advice.
Contact a qualified tax account or financial planner to discuss how to reduce your taxable income and ensure proper withholding.