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Federal
Payroll Matters to U.S. Tax System
The 2017 Internal Revenue Service Data Book shows that 70% of all federal revenue came through payroll. That number shows the importance of payroll professionals to the integrity of the American tax system.
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Federal
DOL Opinion Letter Answers APA Query Regarding Garnishment of Lump-sum Payments
A new DOL opinion letter says most lump sum payments are considered wages under the Consumer Credit Protection Act, which limits the amount that can be withheld under a garnishment or child support withholding order.
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Federal
IRS Urges Employees to Perform ‘Paycheck Checkup’
In a new national campaign, the IRS is urging employers to direct their employees to perform a “paycheck checkup” because of recent changes to the tax laws [IR-2018-80, 4-2-18].
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Federal
President Trump Signs Budget That Affects IRS, E-Verify, Tip Rules
On March 23, President Trump signed H.R. 1625, the Consolidated Appropriations Act, 2018, which provides funding for the federal government until September 30. The new law affects payroll professionals, including funding the IRS and E-Verify, and changing some tip regulations [Pub. L. 115-141].
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Federal
IRS Posts Sample Notice CP220J for ACA Payments
The IRS has posted a sample of Notice CP220J, which it will use to notify applicable large employers (ALEs) that it has charged them an employer shared responsibility (ESR) payment under the Affordable Care Act (ACA).
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Federal
IRS to Release TY 2019 Form W-4, Related Pubs Much Earlier
On March 12, the IRS announced at APA’s Capital Summit that it will release a completely revamped 2019 Form W-4 and several publications by late summer or early fall 2018 to help software developers reflect changes in the tax law made by the Tax Cuts and Jobs Act (Pub. L. 115-97).
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Federal
IRS Modifies Some 2018 COLAs
The IRS has announced changes to some of the previously announced cost-of-living adjustments (COLAS) for 2018 (Rev. Proc. 2018-18). The changes were necessary because of modifications in the tax law made by the Tax Cuts and Jobs Act (Pub. L. 115-97).
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Federal
IRS Releases 2018 Form W-4, Updates Withholding Calculator
The IRS has released the 2018 Form W-4, Employee’s Withholding Allowance Certificate, and an updated version of its Withholding Calculator. Both the form and the calculator have been revised to reflect changes in the tax law made by the Tax Cuts and Jobs Act (Pub. L. 115-97).
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Federal
Deadline to Continue Claim of Exemption From Withholding is February 28
The deadline for employees to provide a new Form W-4 to continue their claim of exemption from federal income tax withholding is February 28, 2018 (extended from February 15). Because the 2018 Form W-4 may not be available by February 28, employees may use the 2017 Form W-4 to claim exemption from income tax withholding for 2018 until 30 days after the 2018 Form W-4 is released.
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Federal
IRS: 2018 Pension Plan Limits Not Affected by Tax Reform Law
On February 6, the IRS announced that the Tax Cuts and Jobs Act’s new formula for calculating inflation adjustments under the IRC using the Chained CPI-U does not affect the tax year 2018 dollar limitations for retirement plans the agency released last October. The IRS announced limitations for tax year 2018 in IRS Notice 2017-64.
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Federal
IRS Issues Publication 15 (Circular E) With Form W-4 Guidance
IRS Publication 15 (Circular E), Employer's Tax Guide, was released by the IRS on January 29, 2018.
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Federal
2018 Federal Percentage Method Income Tax Withholding Tables Released
On January 11, the IRS released Notice 1036. All of the withholding allowance amounts have increased, the optional flat rate for supplemental wages up to and including $1 million has decreased to 22%, the mandatory flat rate for supplemental wages over $1 million has decreased to 37%, and the backup withholding rate has decreased to 24%. Employers are encouraged to implement the 2018 withholding tables as soon as possible, but not later than February 15, 2018. A Compliance Update with this information was sent to members on January 12, 2018.
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Federal
Form W-4 and Withholding Tax Calculator to Be Revised
The IRS has announced that it is revising Form W-4 and its online withholding tax calculator. The revisions will reflect changes made by the Tax Cuts and Jobs Act. Until a new Form W-4 is issued, the 2017 Form W-4 should be used. The IRS expects the revised tax calculator to be available by the end of February. For 2019, the IRS anticipates making further changes involving withholding and will work with the business and payroll communities to encourage employees to file new Forms W-4 next year. A Compliance Update with this information was sent to members on January 12, 2018.
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Federal
2018 Standard Mileage Rates After Federal Tax Reform
The Tax Cuts and Jobs Act (TCJA; Pub. L. 115-97) suspends the deduction for miles driven for moving purposes for tax years 2018 through 2025. This means that all job-related moving expenses paid by the employer to the employee are taxable, whether for mileage or any other expense.
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Federal
Employers Get 30 More Days to Give 2017 Forms 1095-C to Employees
The IRS has extended the deadline to March 2, 2018, for employers and insurers to give the 2017 ACA Forms 1095-C and 1095-B to employees and covered individuals.
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Federal
President Trump Signs Tax Reform Legislation
On December 22, President Trump signed H.R. 1, unofficially known as the Tax Cuts and Jobs Act (TCJA), into law (Pub. L. 115-97). The TCJA, which marks the most sweeping tax changes in 30 years, will impact payroll professionals in 2018 and beyond.
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Federal
APA Makes Headlines for Stance on GOP’s Tax Bill
The American Payroll Association (APA) loudly voiced its concerns on the GOP’s “Tax Cuts and Jobs Act” by penning a letter to the Congress lawmakers on the bill (H.R. 1).
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Federal
APA Requests Tax Reform Transition Relief
With concerns about implementation of the Tax Cuts and Jobs Act (Pub. L. 115-97), APA asked the U.S. House of Representatives and Senate for transition relief for payroll.
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Federal
Social Security Wage Base Updated for 2018
The 2018 social security wage base will be $128,400, not $128,700 as the Social Security Administration (SSA) previously reported. This is still an increase of $1,200 from $127,200 in 2017. The lower amount is due to approximately 500,000 Forms W-2c (correcting 2016 Forms W-2) submitted to the SSA in late October by a payroll service provider.
News & Resources
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