Payroll Tax Updates for 2018 Overview

Payroll Tax Updates

Here’s the latest on what’s changing for 2018. We’ve updated our service to incorporate the items below, so you don’t have to worry.

Social Security wage base is changing – The 2018 Social Security wage base will increase to $128,400.

Additional Medicare Tax – Wages in excess of $200,000 will continue to be subject to an extra 0.9% Medicare tax in 2018.

Credit reduction states – If you pay wages in California, you will pay more in federal unemployment tax (FUTA) when you file your Form 940 for 2017. Visit the IRS website for more information.

New W-2 and 1099 filing deadlines – In an effort to combat fraud, The Protecting Americans from Tax Hikes (PATH) Act of 2015 was passed by Congress and signed by President Obama in December 2015. One key provision revises the filing deadline for Form W-2 and certain types of Form 1099.

The deadline for both employee and agency copies is January 31, 2018.

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