The Treasury Department released new guidelines on how much money companies should withhold from paychecks, saying that the vast majority of workers will see more money rolling in as early as next month, The Washington Times reported. About 90 percent of U.S. workers ultimately will see bigger paychecks thanks to the new tax-cut law, which necessitated the changes, and many of those gains will start in February. “These tax cuts will ensure that American workers are able to keep more of their hard earned income and decide how to spend, invest or save it,” Treasury Secretary Steven Mnuchin said. The IRS also will release a new online calculator by the end of February so that the public can figure out how much money they should be paying. “This will help provide individuals with certainty, so that they are neither over-withheld or under-withheld and can plan their financial decisions,” Mnuchin said. He added that there should be “no material change” in the percentage of taxpayers who will get refunds under the new formula. About three-quarters of taxpayers got a refund last year. The withholding tables rely on a complicated formula, but they reflect the new individual tax rates of 10, 12, 22, 24, 32, 35 and 37 percent, compared to last year’s brackets of 10, 15, 25, 28, 33, 35 and 39.6 percent, which translates to most people seeing a bump in take-home pay.
