Payroll Today

When the IRS released the first draft of the 2019 W-4 back in June, it gave the public 30 days to comment. That 30-day comment period ended in early July. The IRS then said it would release a second draft of the W-4 sometime in August. Well, here we are at the last week in August and what do we have? Nada.
The Tax Cuts and Jobs Act added IRC §199A, which allows owners of pass-through entities to deduct 20% of their qualified business income on their 1040s. IRC §199A is a complicated provision, with some definite payroll implications. Here’s our take on the payroll-related provisions, in five not-so-frequently-asked questions.
This week is Paycheck Checkup Week. If that sounds familiar, it may be because the week of March 26 was also Paycheck Checkup Week. Too much of a good thing? Probably not.
The Tax Cuts and Jobs Act is an outstanding example of the law of unintended consequences. Here’s the latest…
Last week we deviated from our strict payroll perspective to bring you a sneak peak of the 2018 Form 1040. And we’re sure that we’ll deviate again. After all, the Tax Cuts and Jobs Act is just chock full of good stuff that we haven’t highlighted yet and it’s a long summer. But this week we’re back to dissecting the 2019 W-4. Eight steps, lots of heartburn …
One of Congress’ sales pitches for the Tax Cuts and Jobs Act was that you’d be able to file your income taxes on a postcard. Never mind that filing your taxes on an actual postcard would mean that anyone who handles the mail could see your most intimate financial details. The IRS has now released a draft of the 2018 Form 1040.
We often wonder how low ID thieves will go. Apparently, they haven’t hit bottom yet. The acting inspector general of the Social Security Administration recently issued a warning about ongoing Social Security Administration impersonation schemes.
I am not a patient person. I am not good at math. Neither, I suspect, are most employees. No doubt that will disappoint acting IRS Commissioner David Kautter, who commented recently that he’d like it if 200 million employees used the new IRS withholding calculator.

We spend the vast majority of our time unraveling the complexities of payroll law. But sometimes it’s good to step out and stretch our intellectual muscles by delving into other areas of tax law.

Let’s take a break from the never-ending saga of tax reform to consider what the Supreme Court did last week.

The IRS desperately wants to avoid handing taxpayers surprise tax bills next winter. Unfortunately, its withholding calculator is the only tool employees can use to right now to estimate their 2018 status and make changes to their withholding for the rest of the year by refiling their W-4s with you.

Key TCJA changes: