The release on Thursday, January 11, 2018, of updated tax tables is the latest wave of information bombarding employers about tax reform.
It’s a lot to sort through and implement.
The 2018 withholding information shows the new rates for employers to use during 2018. According to Notice 1036, employers should begin using the 2018 withholding tables as soon as possible, but not later than February 15, 2018. Employers should continue to use the 2017 withholding tables until implementing the 2018 withholding tables.
News outlets have been covering this story in depth and have turned to Pete Isberg, ADP Vice President for Government Relations, for expert commentary. Here are some of the top headlines:
- USA Today posted an article on the final tax reform bill, released after months of debate. In the article Isberg offers added perspective on the impact of the legislation and remarking on how it may create the need for employers to obtain updated Forms W-4 from their employees. How Soon After President Trump Signs The Tax Bill Could You See The Effects?
- New York Times, in an article about the impact a revised tax code would have on IRS processes, also quoted Isberg who noted that taking account of changes to the tax code would be easier for larger automated companies, but acknowledged that the short lead time between the law’s anticipated passage and the effective date would be a problem for some. Isberg also commented that the prospective elimination of personal exemptions could potentially invalidate all existing Forms W-4 that employees have signed. Have You Ever Felt Sorry For The I.R.S.? Now Might Be The Time
- Fox Business posted an article quoting Isberg discussing the impact of impending tax reform legislation. GOP tax reform and changes to your paycheck
Where to Turn? ADP Compliance Resources
ADP maintains a staff of dedicated professionals who carefully monitor federal and state legislative and regulatory measures affecting employment-related human resources, payroll, tax and benefits administration, and help ensure that ADP systems are updated as relevant laws evolve. For the latest on how federal and state tax law changes may impact your business, visit and subscribe to ADP Eye on Washington email alerts here: www.adp.com/eyeonwashington.