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
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
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