Ask Elsie is an a column where Chief Financial Officer Elsie Schiro tackles employee queries or, in areas outside her purview, asks other District leaders to answer them.
I heard on NPR that all of the new formulas will need to be adjusted under the new tax plan. How will that affect us? What do we need to know or what should we expect?
Thank you for your question, Erica. I’d be glad to offer an explanation that I hope you find helpful.
While there are many changes in the law that will affect each individual based upon their personal circumstances, the withholding amounts are the only changes employees will see through the Fort Worth ISD payroll. Other changes include, but are not limited to, changes in standard deduction amounts, personal exemptions, child tax credit, education provisions, and itemized deductions. Fort Worth ISD encourages you to consult with your personal financial adviser regarding all changes in the tax law.
Every employee completes a Form W-4 upon employment. Employees may review and update their personal Form W-4 as their personal circumstances change (i.e. financial status, adding or subtracting dependents, marriage, divorce, etc.). This form is used to compute the income tax that is taken from the employee’s check in conjunction with the annual withholding tax tables. It is not necessary to complete a new Form W-4 each year, but it is a good idea for every employee to review their Form W-4 annually. Although it is not complete, the IRS stated that they are in the process of revising the Form W-4 to more accurately reflect the new laws and determine if withholding adjustments are needed. By the end of February, the IRS hopes to release a revised withholding tax calculator to assist employees who wish to update their withholding.
Fort Worth ISD employees will not see any differences in the tax tables until the payroll checks are issued in February 2018. The new tax tables were released last week, however, it was too late to implement the changes for the January 2018 payroll checks. For more information, please visit the Frequently Asked Questions Page on the IRS website: https://www.irs.gov/newsroom/irs-withholding-tables-frequently-asked-questions
Direct your questions to Inside@fwisd.org and put the words “Ask Elsie” in the subject line. Please close your letter with your preferred signature as you wish it to appear in the column. When there are multiple queries on the same subject, we will select the one that is most representative of the subject. We will try to answer as many questions as possible.