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. Most of the changes in the TCJA took effect January 1, 2018, and will remain in effect through 2025.
The Payroll Currently article, “Sweeping Tax Legislation Will Affect Payroll,” describes the changes made by the Tax Cuts and Jobs Act to tax rates and brackets, withholding on supplemental wages, the backup withholding rate, personal exemption elimination and income tax withholding, federal tax levies, inflation adjustments, fringe benefit changes affecting employees and employers, listed property, such as computers, stock options, paid family and medical leave tax credit, disaster distributions from retirement plans, elimination of the Affordable Care Act individual mandate, and proposed measures that were not included in the final legislation.