Compliance Updates

(December 17, 2018) The IRS announced that the business standard mileage rate for transportation expenses paid or incurred beginning January 1, 2019, will be 58 cents per mile, up 3.5 cents from the 54.5 cents-per-mile rate in effect during 2018 [Notice 2019-02, released 12-14-18]. More . . ..

(December 12, 2018) The IRS has released Notice 1036, Early Release Copies of the 2019 Percentage Method Tables for Income Tax Withholding and the 2019 Form W-4, Employee's Withholding Allowance Certificate. Both are available in the Resource Library. More . . ..

(November 15, 2018) The IRS has released inflation-adjusted tables for 2019 reflecting any increases in the FSA deferral limit, foreign earned income exclusion, and excludable transportation fringes, among other changes [Rev. Proc. 2018-57, 11-15-18]. More . . ..

(November 1, 2018) The IRS has announced the changes to the dollar limits on benefits and contributions under qualified retirement plans, as well as other items, for tax year 2019 [IRS Notice 2018-83, 11-1-18]. More . . ..

(October 11, 2018) The Social Security Administration (SSA) announced on Thursday, October 11, 2018, that the 2019 social security wage base will be $132,900, which is an increase of $4,500 from $128,400 in 2018. More . . ..

(September 26, 2018) On September 20, the IRS announced it will delay major revisions to Form W-4, Employee's Withholding Allowance Certificate, until the 2020 version. The 2019 form will be similar to the 2018 version. More . . ..

(September 26, 2018) On September 21, the IRS announced that employer payments or reimbursements in 2018 for employees' qualified moving expenses incurred in 2017 are excluded from the employees' wages for income and employment tax purposes. More . . .

(June 11, 2018) The IRS has released a draft of the 2019 Form W-4, Employee's Withholding Allowance Certificate, and a draft of the 2019 Instructions for Form W-4. The draft Form W-4 has been substantially revised to comply with the Tax Cuts and Jobs Act (TCJA). Both the way withholding amounts will be calculated and the form that employees will complete will be drastically different beginning in 2019. More . . . 

(January 12, 2018) On January 11, the IRS released Notice 1036, Early Release Copies of the 2018 Percentage Method Tables for Income Tax Withholding. The IRS also issued news release IR-2018-05 and posted Frequently Asked Questions, which provide additional information on withholding changes for 2018 and 2019. The tables included in Notice 1036, along with the 2018 wage-bracket withholding tables, will appear in IRS Publication 15, (Circular E), Employer's Tax Guide, which will be published at a later date. More . . . 

(December 22, 2017) On December 22, President Trump signed H.R. 1, also known as the Tax Cuts and Jobs Act, into law. The legislation, which marks the most sweeping tax changes in 30 years, will affect payroll professionals by changing the taxability of two fringe benefits and affecting income tax withholding in 2018 and beyond. Because this tax legislation was passed so late in 2017, the IRS will not issue withholding guidance for 2018 until January. More . . . 

(December 14, 2017) The IRS has announced that the business standard mileage rate for transportation expenses paid or incurred beginning January 1, 2018, will be 54.5 cents per mile, up 1 cent from the 53.5 cents-per-mile rate in effect during 2017 [Notice 2018-03, released 12-14-17]. More . . . 

(December 8, 2017) During its December payroll industry conference call, the IRS indicated that guidance for the 2018 tax year, including the 2018 withholding tables, will be issued later than usual due to the potential tax changes that are being considered in the current congressional push to enact tax reform. More . . .