Effects of new tax code starting to show up in payrolls
OZAUKEE COUNTY, Wis. (CBS 58) -- You should notice a bigger paycheck in the next few weeks. The effects of a new tax code are starting to show up in payrolls. CBS 58 News talked to businesses all over Port Washington and several are already handing out bigger checks.
Tax experts say, however, you want to make sure that your money is going to the right place.
Steve Bennett runs Bernie's Fine Meats in Port Washington. He just told his employees to expect a pay bump. "It looks like a lot of my full-time staffers will get a nice little increase in the 20-30 dollar range," Bennett said.
That would be about $500 to $800 over the course of a year. House Speaker Paul Ryan says 90% of Americans will start getting bigger paychecks this month because most tax brackets are lower.
"The average family of four in Wisconsin will get a $2,000 tax cut this year and every year after," said House Speaker Paul Ryan.
So, what do you need to do to make sure your finances are in order? Patricia Joslin with H&R Block offered this advice. "The important thing to do right now is to look at your W-4 and see where your withholding is, and plan for, really your tax refund for next year."
Joslin says if your check doesn't change, your employer is withholding the extra and you'll potentially get it in your end of the year refund. If your employer isn't withholding too little, you'll pay more to the IRS at the end of the year.
"It's well worth being diligent throughout the year and making sure that withholding month-to-month is where it should be. Consulting a good tax professional throughout the year, a qualified tax professional, a qualified tax professional throughout the year is a good idea, to make sure there are no surprises at the end of the year," Joslin said.
If you want to make sure the right amount money is being withheld from your paycheck, the IRS will be coming out with a new withholding calculator later this month.