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Feds: New withholding guidelines to increase take-home pay

U.S. employers received new withholding guidance from the U.S. Treasury Department and the Internal Revenue Service in order to implement tax cuts and other provisions of the Tax Cuts and Jobs Act.

Employers are encouraged to implement the new withholding tables expeditiously but should do so no later than Feb. 15, 2018.

Workers will see changes in their February paychecks once employers adopt the new guidance, the U.S. government said in a Jan. 11 announcement.

“With this guidance, most American workers will begin to see bigger paychecks,”U.S. Treasury Secretary Steven T. Mnuchin said in a statement.

“We estimate that 90 percent of wage earners will experience an increase in their take-home pay,” he said.

“The administration’s monumental tax reform legislation continues to provide economic benefits for hard-working Americans,” Mnuchin said.

“These tax cuts will ensure that American workers are able to keep more of their hard-earned income and decide how to spend, invest or save it.”

The new guidance was developed jointly by the Treasury’s Office of Tax Policy and the IRS.

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