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New tax withholding guidelines means higher paychecks for most - KATC.com | Continuous News Coverage | Acadiana-Lafayette

New tax withholding guidelines means higher paychecks for most

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If you recently noticed a sudden jump in your paycheck it's most likely not a mistake. Some companies are giving employees bonuses or pay raises in the wake of Congress passing President Trump's tax reform bill. 

The tax plan itself is leaving more take-home pay in your paycheck too.  

"Basically it's a one to two percent raise that they didn't have to pay anything for," says accountant, Kyle George.

"It's bigger than crumbs like the politicians were saying... It's bigger than crumbs," says Mark Guilbeau of Lafayette. 

And they're already making plans for what to do with it. 

"I plan to pay down some credit card debt," says Guilbeau.

For most people, the pay bump is one to two percent. It's a result of employers implementing new withholding guidelines from the IRS. Experts say no worker should be impacted negatively.

If you're worried something is off, the IRS will have a new online calculator to help you figure out if the right amount of money is being withheld. 

"So if you want to go on there to check if you think yours is messed up. The IRS still hasn't updated their payroll calculator it should be up in February or March and then you can plug in your numbers to see where you are with the average citizen," says George.

While the tax break is set to expire in ten years, you could feel effects from it well beyond that time. 

"Look at it as a raise but don't inflate your lifestyle 1 or 2 percent just because you got an extra 1 or 2 percent. Sock it away, put it in the market because the market's doing well right now, and just spend it wisely," says George.
 

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