Share
Print-
Federal
IRS Proposal Would Boost e-Filing of Information Returns
The IRS has proposed regulations that would require that all information returns, regardless of type, be taken into account to determine whether a business meets the 250-return threshold that determines whether information returns must be filed electronically [83 F.R. 24948, 5-31-18].
-
Federal
IRS Releases Draft 2019 Form W-4 and Instructions
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. Employees will be strongly encouraged, but not required, to file a new Form W-4 for 2019.
-
Federal
ACA Affordability Percentage Increases to 9.86% for 2019
The IRS released its annual inflation adjustment to the percentage of household income used to determine whether an employer’s offer of health care coverage under the Affordable Care Act (ACA) is affordable. For plan years beginning in 2019, the percentage of household income increases from 9.56% to 9.86% [Rev. Proc. 2018-34, 5-22-18].
-
Federal
IRS Announces HSA Limits for 2019
The IRS has announced the 2019 maximum contribution levels for health savings accounts (HSAs) and out-of-pocket spending limits and deductible minimums for High Deductible Health Plans that must be used in conjunction with HSAs [Rev. Proc. 2018-30, 5-10-18].
-
Federal
IRS Updates Instructions for Employee Forms to Figure Wage Levies
The IRS created new Notice 1439, Figuring the Amount Exempt From Levy on Wages, Salary, and Other Income – Forms 668-W, 668-W(ACS) and 668-W(ICS), May 2018, that updates instructions for the three versions of Form 668-W, Notice of Levy on Wages, Salary, and Other Income. The updated instructions reflect changes made by the Tax Cuts and Jobs Act (Pub. L. 115-97).
-
Federal
IRS Revises Publication 1494 to Adjust Levy Tables for TCJA Changes
On May 1, the IRS released a revised 2018 Publication 1494, which contains changes to the tables showing the amount of wages exempt from federal tax levies caused by the Tax Cuts and Jobs Act (TCJA).
-
Federal
IRS Grants Transition Relief for Health Savings Account Contributions
On April 26, the IRS announced transition relief for employers that sponsored Health Savings Account (HSA) qualified plans for their employees for 2018 following guidance issued by the IRS in 2017. The maximum HSA contribution limit for individuals with a family high-deductible health plan remains at the original 2018 level of $6,900 instead of the Tax Cuts and Jobs Act level of $6,850 [Rev. Proc. 2018-27].
-
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.
-
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.
-
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].
-
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].
-
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).
-
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).
-
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).
-
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).
-
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.
-
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.
-
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.
-
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.
-
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.
News & Resources
Title