What is Changing?
On January 11, 2018, the Internal Revenue Service (IRS) issued
Notice 1036, the “Early Release Copies of the 2018 Percentage Method Tables for Income Tax Withholding” to implement provisions included in the recently enacted
Tax Cuts and Jobs Act (the Act), which was signed into law on December 22, 2017.
The Act includes several significant changes that are relevant to employers for payroll, employment tax and employee benefits purposes that are generally effective as of January 1, 2018.
According to
Notice 1036, employers should begin using the 2018 withholding tables as soon as possible, but not later than February 15, 2018. In order to comply with Notice 1036, ADP will be making system changes to apply the newly released 2018 tax tables to all payrolls processing with pay dates on or after January 20, 2018.
What Do You Need to Do?
The new withholding tables are designed to work with current Forms W-4 that employees have already filed with their employers to claim withholding allowances. Employees do not have to do anything at this time.
Resources
For a copy of
Notice 1036 please visit:
https://www.irs.gov/forms-pubs/about-notice-1036 .
Head to the Eye on Washington: Legislative Updates
here for additional information.