Payroll Today

4/18/18 Update:

The IRS’ computer systems went back on line a little before 5:00 p.m. yesterday.

I don’t know about you, but I try to never leave free money on the table. But about one million taxpayers who don’t file their 2014 1040s by April 17, 2018, will be doing just that. That’s a lot of people. Some of them may be your employees.

Two of our favorite words: Play ball! Now that the baseball season has officially begun, instead of pondering the infield fly rule, whether real-time review of questionable plays is really worth the time or how to handle that obnoxious, drunken fan of the opposing team sitting two rows ahead of you, think about like-kind exchanges. Why? Because, believe it or not, tax reform has crept in here, too.

Strike while the iron is hot. The IRS is declaring this week—as most taxpayers have finished their 2017 taxes and before the April 17 tax deadline—Paycheck Checkup Week.

If you’ve already tackled your 2017 income taxes, you’ve probably noticed that not much has changed, despite the Tax Cuts and Jobs Act. That’s because the 2018 1040 tax filing season is basically unaffected by the TCJA—those provisions kicked in on Jan. 1.

The Tax Cuts and Jobs Act unleashed a torrent of questions from employers regarding the payroll tax treatment of certain items, like employer-provided meals and working condition fringe benefits, which the IRS promised to answer in the 2018 edition of Pub. 15-B, Employer’s Tax Guide to Fringe Benefits.

The IRS adjusts many tax figures for inflation every year. These cost-of-living changes are measured by changes to the consumer price indices. The Tax Cuts and Jobs Act—the new tax reform law—slows down increases by pegging them to the “chained CPI.” The chained CPI, which became effective for inflation adjustments determined as of Jan. 1, 2018, has forced the IRS to recalculate some key figures. Here’s the rundown. (Rev. Proc. 2018-18, IRB 2018-10)

Our friends at the American Payroll Association recently surveyed its members on the TCJA. The findings give us a somewhat clearer picture of how the law is working out in reality and what’s bothering employees. Here are highlights of the survey results.

Two years’ worth of warning Payroll departments to combat W-2 phishing attempts seems to have paid off.

What, more tax legislation?

February 13, 2018

Haven’t finished digesting the Tax Cuts and Jobs Act, the tax reform legislation signed into law late in 2017? Well, how about a side of Bipartisan Budget Reconciliation Act of 2018 (P.L. 115-123) to make everything go down a bit easier?