The new year might be about new beginnings. But for payroll folks, it’s also about wrapping up year-end details. The changes to the federal tax code have thrown employers somewhat of a curveball – the new guidelines for calculating income tax withholdings adding more to the mix.
With the tax reform generating a sizable impact on today’s workforce, I’d like to share a quick list of basic things to know and point out a few helpful resources:
- The Internal Revenue Service (IRS) has updated the income-tax withholding tables with new rates to reflect the standard deduction, repeal of personal exemptions, and changes in tax rates and brackets for the 2018 tax year.
- The new withholding tables work with Forms W-4. The 2017 Form W-4 should be used until the IRS releases the 2018 Form W-4.
- If you’re an employer, you should start using the 2018 withholding tables as soon as possible and no later than February 15, 2018.
- If you’re an employee, no action is required on your part at this time.
- On the Kronos side, additional information regarding updated tax tables will be included in approaching legislative updates. For Workforce Central Customers, legislative updates are posted in the Workforce HR & Payroll (Alerts) group in the Kronos Community. Workforce Ready Customers can find legislative updates in the Workforce Ready (Announcements) group on the Kronos Community. Make sure you join those groups and set notifications to “Every Post” to be notified by email when they become available. *You must be logged into the Kronos Community to join these groups.
Tools to help you lead the charge:
- HR and Payroll Answerforce, available from the “Learn” menu tab for all Kronos Community members, offers calculators and wizards to guide you through the process.
- IRS Withholding Tables Frequently Asked Questions webpage goes into greater detail on the what, why, and how of these new tax changes.
- Year-End Resources, found on the "Learn" menu tab in the Kronos Community as well, provide tools for Workforce Payroll and Workforce Ready Payroll customers.
You can join the conversation with your peers and Kronos experts in the Workforce Payroll Year-End Discussion group on the Kronos Community.