Midwest Regional Payroll Conference · Key Changes in Tax Law Affecting Withholding • Generally...
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Midwest Regional Payroll Conference Sept. 28, 2018 Melody Green
Transcript of Midwest Regional Payroll Conference · Key Changes in Tax Law Affecting Withholding • Generally...
Midwest Regional
Payroll Conference
Sept. 28, 2018
Melody Green
Understanding How to
Conduct a Paycheck
Checkup
Communications & Liaison Division
Why a Paycheck Checkup?
• Protect against having too little tax withheld
and facing an unexpected tax bill or penalty at
tax time next year.
• Avoid too much withholding; you can receive
more in your paychecks.
• Some law changes in the Tax Cuts and Jobs
Act may affect your withholding.
Key Changes in Tax Law
Affecting Withholding
• Generally lower tax rates
• Standard deductions almost doubled
• Single: $6,350 $12,000
• Head of Household: $9,350 $18,000
• Married-Joint: $12,700 $24,000
• Exemptions eliminated
• Child Tax Credit increased from $1,000 to $2,000/child
and eligibility expanded
• New credit for other dependents of $500/dependent
• Changes to allowable itemized deductions
• www.IRS.gov/taxreform
Who Should Check Their
Withholding?
• Two-income families.
• People working two or more jobs or who only
work for part of the year.
• People with children who claim credits such as
the Child Tax Credit.
• People with older dependents, including children
age 17 or older.
• People who itemized deductions in 2017.
• People with high incomes and more complex tax
returns.
IRS.gov/withholding
What Do I Need?
• Most recent pay stubs.
• Most recent income tax return.
General Information
General Information (cont.)
Wage and Withholding
Wage and Withholding
Other Income and Adjustments
Credits
Itemized Deductions
Results
Your Recap
What if I Don’t Have Enough Withheld?
• Submit a new Form W-4 to your employer
What If I Have Too Much Withheld?
• File a new Form W-4 to:
–Avoid a large refund.
–Put more in your regular paycheck.
Will I Need to Do Another Checkup?
• Recheck your withholding:
–In early 2019
–If your circumstances change
Who Should Use Publication 505?
People with more complex tax situations should
use the instructions in Publication 505. They are
taxpayers who:
• Owe self-employment tax
• Owe alternative minimum tax
• Have tax on unearned income of dependents
• Have long-term capital gains or qualified
dividends
• Owe certain other taxes
Resources
–www.irs.gov/withholding
–Publication 505, Tax Withholding and
Estimated Tax.
–Form W-4, Employee’s Withholding
Allowance Certificate.
–Form 1040-ES, Estimated Tax for Individuals.
Installment Agreement Fees
IA User Fee Category Fee as of
April 10, 2018
Low Income taxpayers who set up
Direct Debit: online or manual
$0
Low Income taxpayers -- unable to set up Direct
Debit—online or manual (reimbursed at completion)
$43
Manual application without direct debit payments $225
Online application without direct debit $149
Manual application with direct debit $107
Online application with direct debit $31
Restructured/Reinstated IA $89
Low Income--Restructured/Reinstated of direct debit $ 0
Low Income--Restructured/Reinstated of non-direct
debit (reimbursed at completion)
$43
Apply Online for a Payment Plan
• www.irs.gov/payments/online-payment-agreement-application
W-2 Scam
• Poses as company executive, asks payroll
employee for list of all employees W-2s
• Targets: businesses, public schools,
universities, tribes
• Employer/victims should email
[email protected] and provide POC
• Victims/non-victims should forward any
suspicious W-2 emails (including full headers)
to [email protected] and use subject line: W2
Scam
W-2 Spoof
Monthly payroll industry calls
• First Thursday of each month
• 12:00 p.m. Central
Send an email to
Payroll Industry Calls
Melody Green, Stakeholder Liaison
• (314) 339-1529
Eden Holsman, Stakeholder Liaison
• (913) 722-7551
Stakeholder Liaison Area 6
(AK, CO, IA, ID, KS, MN, MO, MT, NE, ND, OR, SD UT, WA, WY)
• (206) 946-3703
• CL.SL.Area [email protected]
Contact Information
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Thank You
Questions
