Some Updates For the 2018 Tax Year
2018 Federal Tax Withholding Guidance Released
The Internal Revenue Service (IRS) has released Publication 15 (Circular E), Employer’s Tax Guide, for use in 2018. This publication:
- Details employers’ federal tax responsibilities;
- Explains the federal requirements for withholding, depositing, reporting, paying, and correcting employment taxes;
- Lists the forms employers must give to their employees, those that employees must give to the employer, and those that the employer must send to the IRS and Social Security Administration; and
- Features the tax tables to calculate the taxes to withhold from each employee.
Highlights of the 2018 publication include the following:
- Social Security and Medicare Tax for 2018. The Social Security tax rate is 6.2% each for the employee and employer. The Social Security wage base limit is $128,400. The Medicare tax rate is 1.45% each for the employee and employer. There is no wage base limit for the Medicare tax.
- 2018 Withholding Tables. The publication includes the 2018 Percentage Method Tables and Wage Bracket Tables for Income Tax Withholding.
- Withholding Allowance. The 2018 amount for one withholding allowance on an annual basis is $4,150.
DOL Updates Employer CHIP Notice
The U.S. Department of Labor (DOL) has updated its model notice for employers to provide information on eligibility for premium assistance under Medicaid or the Children’s Health Insurance Program (CHIP). This notice is generally updated twice a year. Click here to download the updated notice in PDF format.
Annual Notice Requirement
Employers that provide health insurance coverage in states with premium assistance through Medicaid or CHIP must provide employees with the Employer CHIP notice annually before the start of each plan year. An employer can choose to provide the notice on its own or concurrent with the furnishing of:
- Materials notifying the employee of health plan eligibility;
- Materials provided to the employee in connection with an open season or election process conducted under the plan; or
- The summary plan description (SPD).
The updated model notice includes information on how employees can contact their state for additional information and how to apply for premium assistance, with information current as of January 31, 2018.
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