The information below applies to ALL employers and employees, however, this post is written specifically with our payroll clients in mind.
H.R. 1, the Tax Cuts and Jobs Act (the Act) was enacted
on December 22, 2017 and generally goes into effect on January 1, 2018. The Act
includes several significant changes that will impact your payroll,
employment tax and employee benefits.
These are two important changes that will impact
employers and employees:
• Income Tax
Withholding Tables: Although new federal income tax tables and rates will take
effect on January 1, there may be a delay in release of withholding tax
guidance from the U.S. Treasury Department. We will continue using the 2017
tables to determine how much income tax to withhold from your employees until the revised 2018 tables are issued. We will update any new
income tax withholding tables in your payroll platform and reach out to you if
any action is needed on your part.
•
Federal Forms W-4: Some employees may ask questions about the effect of
the Act or may submit updated Forms W-4 to modify their withholding allowances
for 2018. You should be prepared to accept updated Forms W-4 from
employees, but may wish to advise employees that a revised Form W-4 will likely
be issued by the IRS later in 2018, and that the employee may need to complete
the revised form at that time.
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