The contentious tax overhaul is beginning to deliver a change that many will welcome – bigger paychecks.
Workers are starting to see more take-home pay as employers implement the new withholding guidelines from the IRS, which dictate how much employers withhold from pay for federal taxes. Those whose checks have remained the same shouldn’t fret – employers have until Feb. 15 to make the changes.
Treasury Secretary Steven Mnuchin has estimated the new rules will mean more take-home pay for about 90 percent of American workers.
How much extra cash? It depends on several factors, such as workers’ income, how often they are paid and the number of withholdings allowances they claim on their IRS Form W-4 with their employer.
Those whose employers were quick to make the change welcomed the extra money – anywhere from a few dollars to a few hundred dollars.