The Latest at the IRS
By Angela Adams, CEBS, SPHR, Director, Human Resource Services
Published January 9, 2018
New Payroll Taxes?
A new year means new changes to employee taxes (based on the tax reform law that passed last month). One would assume that means the IRS has released new tax tables for payroll, so that employers can ensure they are compliant with this new law.
Well, not quite. The IRS has indicated that it is working diligently on getting new withholding tables together, but the tables aren’t done yet. Therefore, employers should continue to use 2017 tables until further notice. The IRS hopes to have information out this month so employers can begin new withholding in February 2018. In addition, the IRS says that current W-4 Forms will work with the new tax tables, so there is no need to have employees fill out new W-4s, unless they are changing their withholding or claiming they are exempt from withholding (in that case, employees must fill out a new W-4 each year).
Extension for 1095-C Reports
Employers now have until March 2, 2018, to get 1095-C reports to employees, after the IRS extended the deadline past the original January 31, 2018 due date.
The 1095-C form is required of employers subject to the Affordable Care Act, which generally speaking is employers with the full-time equivalent of 50 or more employees. The 1095-C goes to each full-time employee (essentially, those that should have been offered insurance) and advises whether that employee had insurance coverage or was offered insurance coverage for each month of the year. This is information employees must have when filing their taxes for 2017.
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