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House Ways and Means Committee Chairman Kevin Brady, R-Texas, talks to reporters at the Capitol after Republicans signed the conference committee report to advance the GOP tax bill, in Washington, Friday, Dec. 15, 2017. less
House Ways and Means Committee Chairman Kevin Brady, R-Texas, talks to reporters at the Capitol after Republicans signed the conference committee report to advance the GOP tax bill, in Washington, Friday, Dec. ... more
Photo: J. Scott Applewhite /Associated Press
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Sen. Orrin Hatch, R-Utah, left, and Rep. Kevin Brady, R-Texas, right, preside over the House-Senate Conference Committee meeting on Capitol Hill in Washington, Dec. 13, 2017. As Republicans prepared to roll out their final $1.5 trillion tax plan, questions continued to loom about how the last-minute changes would be paid for. less
Sen. Orrin Hatch, R-Utah, left, and Rep. Kevin Brady, R-Texas, right, preside over the House-Senate Conference Committee meeting on Capitol Hill in Washington, Dec. 13, 2017. As Republicans prepared to roll out ... more
Photo: Pete Marovich /NYT

One big thing that has apparently been overlooked in the race to pass a new tax plan by Christmas is how U.S. employers and their 150 million workers will adjust their W-4 withholding allowances so they're not in for a shock in April.

The San Antonio-based American Payroll Association, which represents 17,000 employers, sent a letter last week to Senate Finance Committee Chairman Orrin Hatch, R-Utah, expressing concern that there's no time to design and process new W-4 forms before the bill’s rules eliminating personal exemptions take effect. The W-4 is the document employers use to calculate the proper amount of federal income tax to withhold from workers’ paychecks. The IRS recommends employees update their W-4 yearly or when they have a change in status such as marriage or a new baby.

“Should the final version pass both chambers and and be signed into law by President Trump on the 22nd, America’s employees will have to begin implementing the new law only five business days later on January 2, 2018, a herculean task,” Michael O’Toole, APA’s senior director for publications, education and government relations, and Alice Jacobsohn, senior manager for government relations, wrote in the letter.

The letter added that many companies shut down between Christmas and New Year’s Day and a lot of employees use that week to use up their remaining vacation time.

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“At the very least, America’s employers deserve transition relief — applicable throughout 2018 — from any penalties for failing to properly withhold or deposit federal income tax,” it reads. “Making massive changes to the sysem with an unconsciously short lead time is a recipe for disaster.”

Turn to Tuesday’s paper or click here on ExpressNews.com to read the full article.

lbrezosky@express-news.net