The Payroll Mate team put together this \u201ccheat sheet\u201d that covers some of the common questions employers have about the new bill:<\/p>\n
When will the IRS publish the 2018 withholding tables?<\/strong> When will Payroll Mate be updated with the 2018 Tax Cut changes?<\/strong> What are the new withholding rates?<\/strong> What is the new standard deduction?<\/strong> What is the new personal exemption?<\/strong> What are the new flat withholding rates?<\/strong> What is the mandatory backup withholding rate?<\/strong> Will form W-4 get updated?<\/strong> Do we need to file forms 1095-C \/ 1094-C for 2017?<\/strong> <\/p>\n","protected":false},"excerpt":{"rendered":" The United States Congress passed the Tax Cuts and Jobs Act of 2017 on December 20, 2017. Payroll Mate is helping employers and tax professionals comply with the new regulations. The Payroll Mate team put together this \u201ccheat sheet\u201d that covers some of the common questions employers have about the new bill: When will the … Read more<\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[215,217,216],"class_list":["post-1351","post","type-post","status-publish","format-standard","hentry","category-payroll","tag-2018-tax-cut","tag-tax-cut-calculator","tag-tax-reform"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.realtaxtools.com\/Payroll-1099\/wp-json\/wp\/v2\/posts\/1351","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.realtaxtools.com\/Payroll-1099\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.realtaxtools.com\/Payroll-1099\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.realtaxtools.com\/Payroll-1099\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.realtaxtools.com\/Payroll-1099\/wp-json\/wp\/v2\/comments?post=1351"}],"version-history":[{"count":3,"href":"https:\/\/www.realtaxtools.com\/Payroll-1099\/wp-json\/wp\/v2\/posts\/1351\/revisions"}],"predecessor-version":[{"id":1354,"href":"https:\/\/www.realtaxtools.com\/Payroll-1099\/wp-json\/wp\/v2\/posts\/1351\/revisions\/1354"}],"wp:attachment":[{"href":"https:\/\/www.realtaxtools.com\/Payroll-1099\/wp-json\/wp\/v2\/media?parent=1351"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.realtaxtools.com\/Payroll-1099\/wp-json\/wp\/v2\/categories?post=1351"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.realtaxtools.com\/Payroll-1099\/wp-json\/wp\/v2\/tags?post=1351"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\nIn a statement on December 13, 2017, the IRS said they will be publishing Notice 1036 (Early Release Copies of the Percentage Method Tables for Income Tax Withholding) in January 2018.<\/p>\n
\nAs soon as the IRS publishes Notice 1036, our development team will start implementing and testing the 2018 federal withholding calculations.<\/p>\n
\nThe new rates are 10%, 12%, 22%, 24%, 32%, 35%, and 37%.<\/p>\n
\n$12,000 for single filers, $24,000 for married joint filers, and $18,000 for heads of household.<\/p>\n
\nThe personal exemption has been repealed. So there is no personal exemption starting in 2018.<\/p>\n
\nFor supplemental wages up to $1 million, the optional flat rate is 22%.
\nFor supplemental wages in excess of $1 million, the mandatory flat rate is 37%.<\/p>\n
\nThe mandatory backup withholding rate (applies when independent contractors don\u2019t give you their taxpayer identification number before you pay them) is 24%.<\/p>\n
\nYes, most probably employee form W-4 will have \u201cstructural changes\u201d and a new version will be published by the IRS.<\/p>\n
\nThe final tax reform bill (which takes effect in 2018) eliminates (makes it $0) the tax penalty levied on individuals who don\u2019t obtain health insurance. However applicable large employers still have to furnish copies of Form 1095-C to their employee by the end of January and to file those forms, along with the transmittal, Form 1094 – C, with the IRS by Feb. 28, for paper filers, or by April 2, for e-Filers.<\/p>\n![\"Payroll](\"https:\/\/www.realtaxtools.com\/images\/Try-Payroll-Mate-Free.jpg\" "\\"Payroll")
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