Big changes are coming in 2018! As we all now have read; new federal tax rates and brackets, tax breaks for businesses, and possibly bigger paychecks for many employees! Who wouldn’t love more money in their pockets?!?
Kendrick Law Group are not a tax attorneys nor giving tax advice; we are simply looking at the whole and seeing that it LOOKS positive on many aspects from several analyzed sources.
It appears that most companies and business owners will experience good things under the new tax law; generally.
***Clearly with deductions and discussions with your accountant, almost no one straight line pays these rates and this fluctuates; but if you did no deductions and just paid the tax straight, these are your baselines.
Under the new tax rates, most people will pay one-to-four percent less in federal taxes. As a result, many people will soon see more money in their paycheck by February. More shoes, purses and jewelry! Woohoo!
As a business you will need to collect new W-4 forms once the IRS releases the new withholding tables. Previously, every employee would fill out a W-4 and note if they are married and how many children are in their family. The new tax bill eliminates those exemptions which makes those previously completed W-4s now invalid. Once the new W-4s are completed, employees should start to see more money in their paycheck! As of now, federal officials are saying that on average, a family will see a boost of around $4,000 to their income as a result of the new tax changes.
Tune in to Kendrick Law Groups live show “What the hell does that mean?”, tomorrow at 11:15am on our Facebook page for a quick overview on how these changes affect your business with Tax Attorney Charlotte Erdmann of Orlando Tax Law!
Co-written by: Kirsten Williams, Law Clerk
Source 3: Content from Charlotte Erdmann
Source 4: https://www.aprio.com/tax-reform-includes-tax-breaks-businesses/