With recent tax reforms the Internal Revenue Service has issued several new changes to employee payroll. Here are just a few to prepare for in 2018:
As you may already know, Congress recently passed comprehensive tax reform legislation. For an in-depth analysis of the bill, please click here. The analysis features a comparative chart of the new tax brackets, effective January 1, 2018. The chart also illustrates how the bill affects several key provisions that likely impact you, your employees and your company. Worksite Employee Leasing recommends that you advise employees to review the changes and submit a new W-4 Form, if needed.
Employees that registered to receive their W2 digitally were sent an email notification when it became available last month. W2s were not mailed to these individuals.
All non-digital W2s were postmarked on or before January 31, 2018 and sent to employee addresses on file as of January 12, 2018. W2s are not forwarded by the United States Postal Service.
Reprints, due to address changes or any other reason, are available through our secure online employee portal, by calling 941-677-0110, or by emailing W2@WorksiteEmployee.com with the following information:
• Full Legal Name
• Old and New Address (if applicable)
• Name of Employer
Effective January 1, 2018 the minimum wage for Florida changed to $8.25 and $5.23 for tipped employees, plus tips.
Please make sure to replace your 2017 FL Minimum Wage Poster with the 2018 Poster immediately. If you have not received your 2018 FL Minimum Wage Poster, please contact your Payroll Specialist.
State Unemployment Wage Base (SUTA)
The Florida Unemployment Wage Base will remain the same for 2018. The cutoff for SUTA wages is $7,000. This means you are no longer charged SUTA on an employee’s wages after they have reached $7,000 in earnings in 2018.
Federal Unemployment Wage Base (FUTA)
There is no change in the Federal Unemployment Wage Base. The cutoff for FUTA wages will remain at $7,000. This means you are no longer charged FUTA on an employee’s wages after they have reached $7,000 in earnings in 2018.
Social Security Wage Base
The Social Security Wage Base cutoff for 2018 increased from $127,200 to $128,400.
The 401k contribution limit for 2018 increased from $18,000 to $18,500. Employees who are 50 or older may contribute an additional $6,000 for a total contribution up to $24,500.
If you have questions regarding how the information above affects your company or your employees, please contact your Payroll Specialist.