The Tax Cuts and Jobs Act suspends tax free reimbursement for qualified moving expenses to all employees, except for active military members. Any moving expenses incurred after December 31, 2017 paid directly to an employee, or paid to a third party on behalf of an employee, must be reported as taxable income for the employee. Employees may not deduct moving expenses either, according to the Act.
Employers paying third party vendors directly can use our Special W-2 Recordings form to report the amount paid on behalf of the employee. Employers have the option of covering the employee portion of FICA by grossing up the amount to cover the FICA taxes.
At this time it is unclear what, if any, changes will occur to individual states in regard to handling moving expenses. We will communicate any state changes when more information becomes available.
Corporate Payroll Services Clients Will See Changes Reflected in
Payrolls Processed Beginning Monday, January 15, 2018
On January 11, the Internal Revenue Service released updated withholding tables for 2018 to reflect changes required by the Tax Cuts and Jobs Act signed into law last month. Employers should begin to use the new withholding tables as soon as possible, but no later than February 15, 2018, according to the January 11 news release. Clients of Corporate Payroll Services will see the withholding changes reflected in paychecks processed beginning Monday, January 15, 2018, a full month ahead of the IRS deadline.
The new tables take into account the changes in tax rates and brackets, the increase in the standard deduction and the repeal of personal exemptions. They are designed to work with the current W-4 forms that employees have filed with their employers to claim withholding allowances. No changes to the forms are required at this time.
However, the IRS indicated that it is working to revise the Form W-4 and provide a new online calculator by the end of February. The new form and calculator will take into account changes in itemized deductions, increases in the child tax credit, the new dependent credit and the repeal of dependent exemptions, with a goal of producing the correct amount of withholding and avoiding under- or over-withholding of income taxes.
The IRS also posted a Frequently Asked Questions document to clarify commonly asked questions about the withholding changes. Of course, as a Corporate Payroll Services client, if you have a question about your specific situation, please reach out to your local branch office and ask to speak to your Payroll Specialist.
Banks will be closed on Monday, January 15, 2018 in observance of the Martin Luther King Jr. Day holiday.
If you are a direct deposit or CPS Checks customer, please submit payroll at least one business day early by your branch's cutoff time to ensure proper funding of employee bank accounts.
MLK Jr. Day Direct Deposit Deadlines:
Checks Dated On: Submit Payroll By:
Friday, 01-12-2018 Wednesday, 01-10-2018
Tuesday, 01-16-2018 Thursday, 01-11-2018
Wednesday, 01-17-2018 Friday, 01-12-2018
Payrolls submitted after your branch’s cutoff time on Friday, 01-12-2018 will not be processed until the following Tuesday. Auto-run payrolls will be processed early to ensure timely funding of employee bank accounts.
If you have any questions, please contact your Payroll Specialist at your Branch Office.
Minimum wage rates are increasing in many states this year. Unless otherwise noted, the minimum wage rates in bold are updated rates effective January 1, 2018. States with no change in minimum wage rates are not bolded.
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