Employees are reminded to review their W-4 for 2018 and to file a new one, if necessary.

Form W-4 determines the amount of federal taxes that will be withheld from your paycheck. If not enough tax is withheld, you may face a penalty when filing your personal income tax return. In past years, 2.5 million taxpayers were assessed an average penalty of $155 each for failing to pay enough tax during the year.

On the other hand, if too much is being withheld, you are making an interest-free loan to the U.S. government and you are losing out on interest you could have been earning throughout the year. Each year, about 73.5 percent of taxpayers receive a refund when they file their returns.

Why would your filing status change from year to year?

Listed below are some possible reasons:

  • Marriage
  • Divorce
  • Birth or adoption of a child
  • Purchase or sale of a home
  • Retirement
  • Taking a second job
  • Spouse returning to work
  • Receiving income not subject to withholding (e.g., rent, dividends, interest)

To determine your W-4 withholding status, complete the worksheet on the back of a W-4 or consult your tax advisor. You may also visit www.irs.gov and select the IRS withholding calculator to determine your withholding status.

Employees who want to change their W-4 withholdings must log into UltiPro. Once logged in, select the "Menu" tab and "Myself." Under "Pay," select "Income Tax" and then select the option on the right to "Add/Change Withholding Form." Follow the instructions on the form then submit.