Monday, January 8, 2018

What the New Tax Reform Law Means For Your Paycheck

On Dec. 22, 2017, President Trump signed into law H.R. 1, aka the Tax Cuts and Jobs Act. This legislation will impact the amount of federal income tax that is withheld from your paycheck. In general, the expected impact of this legislation is to reduce the amount of federal income tax withheld from your paycheck, thus increasing your net pay. 

Because the legislation was passed so late in 2017, the IRS will not be issuing payroll withholding guidance for 2018 until sometime in January. Indications are it may be late January before such guidance will be issued and our payroll system can be updated. It will likely be February before you’ll see the effects of this legislation in your paycheck. We’ll keep you updated as more information becomes available. If you have any questions, contact Steve Jordan, Senior Payroll Specialist, at ext. 14908.

No comments:

Post a Comment