Another tax headache ahead: IRS is changing paycheck withholdings and it'll be a doozy

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The IRS is changing how you adjust your paycheck withholdings, and it won’t be easy.

You finally finished your taxes and are learning – for better or worse – the ins and outs of the new law.

But the changes won’t be simple, says Pete Isberg, head of government affairs at ADP, the payroll and human resources company.“It’ll be a much bigger pain,” he says. “The accuracy will be 100 percent, but the ease-of-use will be zero.” Many cited privacy issues because the form asked for spousal and family income that workers might not want to share with their employers. Other employees may not want to disclose they have another job or do side work outside their full-time job.

What to expectAnother draft version of the new W-4 is expected by May 31, according to the IRS, which will also ask for public comment.

 

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