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Check your paycheck next month—it might look different if the GOP tax plan passes

Check your paycheck next month—it might look different if the GOP tax plan passes
[Photo: NeONBRAND/ Unsplash]

Well, this is scary: The American Payroll Association has reportedly sent a letter to U.S. lawmakers warning them that last-minute changes to the GOP’s tax overhaul plan could wreak havoc on paychecks. Cited by CNN, the letter says employers and payroll service providers would not have enough time to sort out all the changes in employees’ take-home pay. Per CNN:

“Our members are already starting to panic, on behalf of themselves and millions of employees, about the effect on 2018 withholdings of a tax bill that will be effective a week after its enactment.”

Republicans are aiming to pass their tax plan by Christmas. Since many of the changes will go into effect on January 1, that leaves only a few days to implement the new rules.

Speaking to the Wall Street Journal, James Paille, an executive with a Thomson Reuters-owned payroll processor, said he worries that disruptions from the new withholding system could result in some employees seeing higher-than-normal taxes taken out of their paychecks.

Read more from WSJ and CNN.CZ