On Friday, MSNBC’s Stephanie Ruhle appeared on "Today" to explain the way in which the new tax reform will change how much employers withhold from employee paychecks:
You fill out your W4; your employer figures out what they should withhold. Now, one of the issues is the employers are working off last year’s system – they don’t have the new forms yet. Now, the government says, "We’re gonna get you those new forms by mid-February." So that’s a positive, but thus far, people are anxious about it. We’re going to find out.
There are going to be these IRS tax calculators that are coming out online. So, you're gonna put out next month, you're gonna go online and you’re gonna say, "Here's my income, here's my family information," and by putting that out, they're going to spit out a number. And so then you’re going to tell your employer if it seems too high or too low. Yes, it's making you nervous saying this is all gonna happen overnight. Listen, this tax bill went through very quickly. They don't have all the forms they need, but according to the government, mid year, these companies should figure it out.
When "Today" co-host Hoda Kotb asked if it looks like "more people are gonna get more money in their paycheck right away," Ruhle replied, "It does. According to the White House, 90% of people are going to get an increase. They say it should happen by next month. I'm not telling you should go out and buy a new washing machine today. Wait for next month to come, but, according to the White House, they are saying be patient, we need to work through the system."
So, make sure to tell your progressive friends and family to begin checking their paychecks for increases starting as soon as February.