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As the Summer of 2018 comes to close we’re reminded of the beaches we may have visited or the restaurants we possibly frequented during those warmer, less chaotic months. As we were enjoying some those places, maybe at a seasonal vacation location, it’s hard not to recognize the employees of those establishments that dutifully made our relaxing just a little better.
In thinking about those seasonal and part-year workers, it seems like a good time to encourage a paycheck checkup. An earlier blog post discussed the paycheck checkup in general, but seasonal or part-year employees are unique in that they are only employed by a business for part of the year.
The Tax Cuts and Jobs Act (TCJA) made significant changes that affect federal income tax withholding. The TCJA lowers the income tax rates, changes the tax brackets, increases the standard deduction, removes personal exemptions, increases the child tax credit, and limits or discontinues certain deductions.
These changes may have complicated your wage withholding situation. You might be over-withholding taxes from your paycheck.
If you work a seasonal job or are employed only part of the year, the IRS is encouraging taxpayers like you to visit the Withholding Calculator at IRS.gov to perform a “paycheck checkup.”
As a seasonal or part-time worker, any changes you make to your wage withholding can affect each paycheck in a larger way than for employees who work year-round. Just to be safe, don’t hesitate to contact your tax professional for guidance and advice.