What are the federal tax updates for 2018?

Because of the federal tax overhaul, many companies are in the process of updating their payroll systems for 2018.

The IRS recently released its new withholding tables for the new year, and that means changes in how employee paychecks are processed for federal taxes. Here at IPS, we completed our own system update to ensure all of our customers are in full compliance with the latest changes. It is important to note that some employees may see a change in take home pay because of the new law. If you have any questions, be sure to contact your IPS representative.

In addition, the IRS also released the tax wage and plan limits for 2018.

While there are a few minor increases in the limits allowed by the federal government for the Social Security wage base and retirement plan contributions, not much has changed from last year. Still, it is important for payroll professionals to have a firm grasp on current rules. Having to course correct after the fact can waste valuable time and resources.

If you have any questions on what these tax wage and plan limit changes mean for your business, be sure to contact your IPS representative.

“Tax” flickr photo by 401(K) 2013 https://flickr.com/photos/68751915@N05/6355404323 shared under a Creative Commons (BY-SA) license