Important Tax Law Changes for 2018

SUBJECT:  Important Tax Law Changes for 2018

The new Tax Cuts and Jobs Acts, which was signed by President Donald Trump in December 2017 will impact individual taxpayers.

Employees may see variations in their paycheck amounts beginning with their pay for February 1 – 15, 2018 pay period (pay date February 22nd).  The new tax tables used to calculate taxes have been entered into our payroll system.  The tables reflect the increase in the standard deduction, repeal of personal exemptions and changes in tax rates and brackets.  At this time, there are no actions employees need to take.

The IRS is revising the withholding tax calculator on and anticipates it to be available at the end of February.  In addition, the IRS is working on revising the Form W-4.  Both the tax calculator and Form W-4 will reflect additional changes in the new law and can be used by employees who wish to update their withholding in response to the Tax Cuts and Jobs Act or changes in their personal circumstances in 2018.  Additional information is available on the IRS news release, “Updated 2018 Withholding Tables Now Available; Taxpayers Could See Paycheck Changes by February.”

Another change is to the qualified moving expenses related to employment, which are no longer exempt from income tax.  Effective January 1, 2018, all moving related reimbursements or payments made on behalf of new employees are required to be included in the employee’s income and are subject to applicable payroll tax withholdings.  RCUH will be revising the 3.215 RCUH Moving Expenses/Relocation policy and related forms to reflect this change.

If you have any questions, please contact the RCUH Payroll section at [email protected].