There are a number of things that employers and their employees should be aware of for 2018. While the start of a new year can be a sluggish transition for some, for others it can be a storm of activities involving meetings, deadlines and the establishment of goals. Regardless of which spectrum you fall under, below are payroll and tax info for this year that you need to know.
The Minimum Wage Will Increase For Some
22 states (which includes both the Virgin Islands and District of Columbia), will raise their minimum wage in 2018. It is important for employers to do their research to find out if their location applies, especially if they operate in multiple states.
The Unemployment Tax Will Increase For Some States But Go Down In Others
17 states are expected to raise the taxable wage amounts for unemployment taxes. 8 states will lower their base of taxable wages. Therefore, employers will need to refer to a tax guide in order to find out what, if any, new rules apply to them.
An Extension Will Be Provided For Individual 1095 Forms
The IRS has provided a guidance which will extend deadlines for the distribution of 1095 forms from 2017 (B/C) which will be from the 31st of January until March 2nd of 2018. Those filing 1094 or 1095 forms through paper will have a due date of February, 28, 2018, while those who are filing these forms electronically will have a due date of April 2nd, 2018.
The Wage Base For Social Security Will Go Up
In October of 2017 the administration of Social Security revealed that the wage base for 2018 will increase, from $127,200 in 2017 to $128,400 in 2018, which is an additional $1200.
Standardized Rates For Mileage
The travel and transport rate for business usage of a vehicle has been set at 54.5 cents per mile in 2018. This is an increase from 53.5 cents which was the mileage rate for 2017.
Deadlines For W-2 Form Filing
The majority of states have a deadline of January 31st for W-2 form filing. Despite this, other states such as New Jersey, Hawaii, West Virginia, Oklahoma and New Mexico instead have a deadline of February 28th to file the W-2 Form, so employees in these states will get additional time to fill out and submit them.
President Trump’s Job Act And Tax Cuts
President Trump signed his Jobs Act and Tax Cuts this past December, and while details regarding it are still developing, what is known so far is that many of the personal exemptions were removed, while standard deductions were doubled. The IRS, for its part, has stated that it expects to release withholding guidance for implementation of the recent tax reform law later this month. This means that for most employers the new rules will go into effect in February.