How did your first week of January go? For some, it can be a slow transition back into the everyday grind after holiday time away. For others, this month will likely be a whirlwind of deadlines and goal-setting and important meetings.
For those reading this article, we’re excited to announce the launch of our updated Quick Wage and Tax Guide to help you through the rest of the year!
We’ve compiled state-by-state wage information, unemployment insurance rates and federal numbers for taxable wages, contribution limits, and more.
Click here to download your free copy now.
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In addition, here are 7 general things to know about payroll and taxes this year.
1. Extension announced for providing Forms 1095 to individuals.
First, some good news (a little bit of breathing room).
The IRS issued guidance extending the deadline to distribute 2017 Forms 1095-B/C from January 31, 2018 to March 2, 2018.
No extension has been granted for filing forms with the IRS. If filing by paper, the Forms 1094/1095 will be due Feb. 28, 2018. If filing electronically, forms will be due April 2, 2018. Learn all about this update by clicking here.
2. Minimum wages increases.
Twenty-two states (including D.C. and the U.S. Virgin Islands) have updated minimum wages for 2018. See our latest blog post for information on what has changed (or will change) this year.
3. Form W-2 filing deadlines.
Most states have a Jan. 31 deadline for filing Forms W-2. However, Hawaii, Michigan, New Jersey, New Mexico, Oklahoma and West Virginia have until Feb. 28 to file Forms W-2.
For tips you can share with your employees on how to read a W-2, please click here.
4. Unemployment taxes.
Seventeen states have increased the amount of taxable wages subject to unemployment tax.
Eight states have lowered their taxable wage base. These can be found in our tax guide.
5. Social Security wage base increases.
The Social Security Administration announced back in October, 2017 that the 2018 Social Security wage base will be $128,400 for 2018. That is an increase of $1,200 from $127,200 in 2017.
6. Standard mileage rate.
The rate for transportation or travel expenses involving a business’s use of an automobile is 54.5 cents a mile for 2018. That’s up from 53.5 cents in 2017. You can learn more about this from the IRS by clicking here.
7. Developing: The Tax Cuts and Job Act.
President Trump officially signed H.R. 1, the Tax Cuts and Jobs Act in December. What we know so far is that personal exemptions have been eliminated and the standard deduction has doubled.
The IRS has said that it anticipates releasing withholding guidance to implement the new tax reform law this month. For employers and payroll providers like us, the changes are expected to be implemented in February.
Read our latest guidance on this here and be sure to check back as we’ll continue to update.