June is IRS Payroll Check-up Month
They say taxes and death are the only certainties in life. While you can’t time the latter, you can time taxes, and doing a payroll check-up is a great way to make sure you don’t have any surprises.
If you are an employer, June is IRS check-up month, a great time to provide tools and help your employees be sure they are on track. By checking their withholding, taxpayers can make sure enough is being taken out of their paychecks or other income to cover the tax owed.
Everyone Should Check Withholdings
The IRS recommends that everyone do a Paycheck Checkup early in 2019. Though especially important for anyone with a 2018 tax bill, it’s also important for anyone whose refund is larger or smaller than expected. By changing withholding now, taxpayers can get the refund they want next year. For those who owe, boosting tax withholding early in 2019 is the best way to head off a tax bill a year from now. In addition, taxpayers should always check their withholding when a major life event occurs or when their income changes.
The agency said the average tax refund was $2,729 for the tax year, 2018. While some taxpayers may find it advantageous to get a large tax refund, others may wish to have more of their money in their paychecks throughout the year.
Whatever the goal, the IRS wants taxpayers to know that while taxes must be paid as income is earned during the year, either through withholding or estimated tax payments, they can make adjustments that will influence the size of their refund.
Doing an annual #PaycheckCheckup is a good idea for everyone – it’s designed for people who receive wages, but the #IRS Withholding Calculator can help recipients of pension and annuity income, too. www.irs.gov/withholding