Payroll Today

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:

Not very comforting, is it?

Back in the winter, we mentioned that the IRS anticipated that the entire withholding process would change, beginning in 2019, thanks to the Tax Cuts and Jobs Act. Apparently that’s true, if this first draft of the 2019 W-4, which the IRS released last week, makes it into prime time.

I’m a city kid. I live now in the inner suburban ring of my city. It’s quieter, but sometimes the density and the crazy mall drivers get to me.

If you have employees who are more dismayed with their quality of life than I am, Vermont is beckoning. S.B. 94, signed by Gov. Phil Scott on May 30, promotes telecommuting by enacting a new remote worker grant program.