Tax Reform and Payroll Update

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Tax Reform and Payroll Update

Significant changes are on the way for withholding tables in 2018.

Important items to note:

  • Recalculations of withholding tables will take some time to put together and send to the public. Look to early February at the earliest to see this change.
  • Supplemental wages (bonuses and commission) on any amounts under $1 million will have an increased standard rate of 28% up from 25%.
  • Private sector employees may see a slight difference in their take home pay amounts while others may not notice the change until completing their 2018 individual or corporate tax returns in 2019.

Check out the Bloomberg article for more detailed information and wage breakout specifics here.