Tax Withholding: Have Your Employees Recently Updated It?
February 17, 2023
Even though employees can update their tax withholding as many times as they like, and at any point in the year, the start of the year is a great time to remind employees to review their Federal and State (if applicable) tax withholding forms to ensure that the correct amount of tax is being withheld from their paychecks. This typically involves a two-step process by the employee.
First, the employee needs to determine that their current tax withholding is the correct amount for their tax situation. To do this, have employees:
A. Consult their tax advisor
This online wizard allows employees to input all of their tax information (including but not limited to filing status, number of dependents, gross pay, the amount withheld, deductions to claim, etc.) Completing the estimator, allows the IRS to estimate whether an employee’s current withholding amount is likely to result in 1) additional tax owed, 2) a refund, or 3) a $0 tax balance.
B. Employees can also use the IRS Tax withholding Estimator
It is highly recommended that the employee consult with a tax expert to assess their current withholding amounts and determine if any additional amounts should be withheld from their paycheck. This can help ensure that the employee is properly accounting for their tax obligations and avoiding any potential penalties or fines. Taking the time to seek professional advice on this matter can be a wise investment in the employee’s financial future.
Secondly, if the employee needs to update their tax withholding, they can log in to their personal self-service portal to complete any tax updates.
While PBS cannot provide any tax advice on employee withholding amounts, PBS will be glad to answer questions on how employees can access their personal self-service login to complete any tax updates.