The new tax law passed by congress in December 2017 makes a number of changes for calendar year 2018 that will affect individual taxpayers. Employees may see variations in their monthly paychecks amounts throughout the coming year as the new law is implemented.
- The following is a summary of the changes resulting from the new Federal law the University has received guidance on so far:
- The new tax tables used to calculate taxes have been entered into our payroll system. These tables take into account the increase in the standard deduction, the repeal of personal exemptions, and changes in the tax brackets and rates.
- Monthly pre-tax payroll deductions for parking permits are no longer available. Beginning with the February 2018 payroll the deductions for parking permits will need to be made on a post-tax and not a pre-tax basis.
- Monthly pre-tax payroll deductions for meals purchased through Food Services are no longer available. Beginning with the February 2018 payroll these deductions will need to be made on a post-tax and not pre-tax basis.
- Qualified moving expenses related to employment 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.
At this time there are no actions employees need to take. Business Affairs in conjunction with Human Resource Services will keep you informed on additional changes or guidance as it becomes available.
As changes go into effect the IRS recommends that each individual assess their tax situation. To help facilitate this the IRS will be updating their withholding calculator by the end of February 2018. The IRS is also updating Form W-4, which can be used along with the calculator to update their withholdings in response to the new law, changes in personal circumstances, or when starting a new job. Until a new Form W-4 is released, the University and employees should continue to use the 2017 Form W-4.
For 2019 it is anticipated that the IRS will make additional changes for withholding. New Form W-4 may be required to be filed.
For additional information consult your tax preparer or visit the IRS’s web site at www.irs.gov.
For questions please contact the Controller’s Office at 828-262-2110. To make revisions to your current tax withholdings please contact Human Resource Services at 828-262-3187.