2018 New Federal Tax Calculations.......

Everyone;

The IRS is “working” to develop guidance to implement the tax reform bill signed into law on December 22, 2017 (see the official statement below).  The IRS is “anticipating ” releasing that guidance in January and the IRS will be “encouraging” Payroll Service Bureaus to implement the changes in February.  The IRS said that the existing W4’s already filed do not need to be re-filed. 

UBCC has the New Federal tax calculations ready for your use (based  on non-IRS sources) for anyone who wants to use them immediately. Please let us know if you want them.

As soon as they The IRS publishes the official 2018 rules, UBCC will make any changes as soon as possible. Note too that exclusively at the discretion of the IRS, the 2017 rules may be continued for 2018.”

There are now four federal tax Status for 2018………

  • S    Single  ($12,000) Standard Deduction
  • M   Married ($24,000) Standard Deduction
  • H    Head of Household (18,000) Standard Deduction
  • MS  Married filing Separate ($12,000) Standard Deduction

There are no longer any personal Exemptions (Standard Allowances).  A person that ended 2017 as Married with 3 FWH Exemptions will have the same Federal Tax calculated as a person that was Married with 1 Exemption.

There should be a new W4 coming that is not yet available, and no release date or even a draft that I could find.  How else would anyone select to be Head of Household or Married filing Separate?

Outside of changing a person’s Tax Status there will need to be a additional method or two on the W4 to have more tax taken out or less tax taken out.

UBCC already supports:
  • fixed amount FWH add-on/subtract from FIT
  • FWH percentage
  • zero tax (using 99 Exemptions) all of which will still work in 2018.

Please let us know if you want to get the new tables early and/or have any questions  or suggestions.

Official IRS Statement……..

December 26, 2017
The IRS is working to develop withholding guidance to implement the tax reform bill signed into law on December 22.  We anticipate issuing the initial withholding guidance in January, and employers and payroll service providers will be encouraged to implement the changes in February. The IRS emphasizes this information will be designed to work with the existing Forms W-4 that employees have already filed, and no further action by taxpayers is needed at this time.

Use of the new 2018 withholding guidelines will allow taxpayers to begin seeing the changes in their paychecks as early as February.  In the meantime, employers and payroll service providers should continue to use the existing 2017 withholding tables and systems.
https://www.irs.gov/newsroom/irs-statement-withholding-for-2018

Thanks,

Ken

Ken Garen
President
UBCC   Universal Business Computing Company
800-762-8222


Comments

Popular posts from this blog

Report: World’s 1st remote brain surgery via 5G network performed in China

BMW traps alleged thief by remotely locking him in car

Visualizing The Power Of The World's Supercomputers