The Internal Revenue Service releases an updated version of the tax withholding tables during the month of December prior to the tax year for which they are applicable. The publication of the new tables supersedes any previously published versions of the tables.Continue Reading
The withholding tables are adjusted annually to correspond to the changes made to the tax payment schedules by the IRS. Every year, in order to reflect changes made by inflation, the IRS updates the tax payment tables and schedules as well as making cost of living adjustments to certain taxable items. The IRS publishes the updated tax tables first, then makes the relevant adjustments to the withholding tables. This is done so that employees do not have too much or too little withheld from their pay.
While these tables are published before the rates are applicable, there is always the possibility that the government may make changes to the tax code, making the current tables inaccurate. In this event, the IRS publishes an updated version that takes into account any changes that are made. The information contained in the tables is comprehensive, containing the rates for all filing situations. Although the IRS makes these tables freely available and they may help an employee determine how much is withheld from his pay, they are intended primarily for employers or payroll services.Learn more about Income Tax