The IRS said it expects to issue initial guidance on new withholding tables for payroll systems in January 2018, "which would allow taxpayers to begin seeing the benefits of the change as early as February."
Many employees may need to file new W-4 forms, but it isn’t clear when new ones will be ready.
"We are taking the initial steps to prepare guidance on withholding for 2018," the IRS said in a statement shortly before the congressional vote. The IRS also said it "will be working closely with the nation's payroll and tax professional community during this process." The IRS encourages wage earners to review their tax withholdings.
"By adjusting the Form W-4, Employee's Withholding Allowance Certificate, taxpayers can ensure that the right amount is taken out of their pay throughout the year," the IRS advised. "Having the correct amount withheld from paychecks helps to ensure that taxpayers don't pay too much tax during the year—and that they have money upfront rather than waiting for a bigger refund after filing their tax return."
Please mail your adjusted W-4 form to Payroll through the U.S. Postal Service or drop it off in person to the Payroll Department at the District Office.
The level of income that is subject to a higher tax bracket also can influence a number of decisions by employees, including how much salary to defer into retirement savings plan. __________________________________________________________________________________ Retirement Savings Plan Annual Contribution Limits
Pre-Tax Contributions (withdrawals taxed as income during retirement)
$18,500 *401(k), 403(b), 457
$24,500 Can contribute an additional $6,000 for age 50+
*401(k) and 403(b) plans share a combined annual limit 457 plan is treated as separate from the 401(k)/403(b) limits
After-Tax Contributions – may be tax deductible (withdrawals taxed as income during retirement)
$5,500 Traditional IRA
$6,500 Can contribute an additional $1,000 for age 50+
After-Tax Contributions (withdrawals are tax-free during retirement)
$5,500 Roth IRA
$6,500 Can contribute an additional $1,000 for age 50+
All of the above plans are available as a payroll deduction, and they are all with Utah Retirement Systems (URS), with the exception of the 403(b) plan. You may obtain information and/or forms by logging in to www.urs.org, or by contacting the Payroll Department. The 403(b) provider list and contact information is available on the Payroll Department’s website.
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$128,400 Social Security Wage Base ________________________________________________________________________________
Health Savings Account (HSA) Annual Contribution Limits (under qualified plans)
$3,450 Single Medical Coverage
$4,450 Can contribute an additional $1,000 for age 55+
$6,900 Family Medical Coverage
$7,900 Can contribute an additional $1,000 for age 55+