2018/2019 Tax Reform Updates

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2018 Federal Tax Withholding Changes Resulting from Tax Reform Regulations

The University of Pittsburgh is actively monitoring information from the IRS regarding changes to tax withholding as a result of the new tax reform regulations. Payroll will update this news page as we receive up to date information. Please check back frequently.

 

January 16, 2019 UPDATE

2019 IRS Federal Income Tax Withholding Calculator is available.

The IRS Withholding Calculator helps you identify your federal tax withholding to make sure you have the right amount of tax withheld from your pay. This calculator works for most taxpayers.

For additional information regarding the withholding tables please visit IRS FAQs.

To Change Your Federal Income Tax Withholding: Use your results from the IRS Withholding Calculator to complete an online Form W-4 change.

Non-Resident Aliens: The new tax tables may impact nonresident alien pays differently than other types of employees. The section “Withholding Adjustment for Nonresident Aliens” in IRS Notice 1036 is a guide for understanding the change in withholding.

 

August 14, 2018 UPDATE

Reminder to Check Your 2018 Federal Income Tax Withholding

The IRS is encouraging individuals to use the IRS Withholding Calculator to perform a quick check-up on their federal income tax withholdings. This is important this year because of recent changes to the tax law for 2018.

The IRS Withholding Calculator helps you identify your federal tax withholding to make sure you have the right amount of tax withheld from your pay.

Please use this IRS Withholding Calculator to perform your personal checkup. This calculator works for most taxpayers.

The IRS has identified the below groups that may have more complex financial situations. These groups should review additional instructions in Publication 505, Tax Withholding and Estimated Tax:

  • 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 ages 17 and older.
  • People who itemized deductions in 2017.
  • People with high incomes or more complex tax returns that may include;
    • Long term capital gains or qualified dividends.
    • Self-employment tax
    • Alternative minimum tax
  • People with large tax refunds or large tax bills for 2017.

For additional information regarding the new withholding tables please visit https://www.irs.gov/newsroom/irs-withholding-tables-frequently-asked-questions.

To Change Your Federal Income Tax Withholding: Use your results from the Withholding Calculator to complete an online Form W-4 change at My.pitt.edu>PRISM>PHR Self Service>W-4 Tax Form.

Non-Resident Aliens: The new tax tables may impact nonresident alien pays differently than other types of employees. The section “Withholding Adjustment for Nonresident Aliens” in IRS Notice 1036 is a guide for understanding the change in withholding.

If you have additional questions regarding your individual income tax withholdings, we suggest you consult a tax advisor for assistance.

Thank you,

The University of Pittsburgh Payroll Department

 

March 1, 2018 UPDATE

The new federal income tax tables are now available https://www.irs.gov/individuals/irs-withholding-calculator

For additional information regarding the new withholding tables please visit https://www.irs.gov/newsroom/irs-withholding-tables-frequently-asked-questions

 

February 12, 2018 UPDATE

The new tax tables may impact nonresident alien pays differently than other types of employees. The section “Withholding Adjustment for Nonresident Aliens” in IRS Notice 1036 is a guide for understanding the change in withholding.

If you need additional information, we have created a comparison table that may help you.

If you have questions regarding your pay, please feel free to submit an inquiry and we will be happy to assist you.

 

January 19, 2018 UPDATE

Your next paycheck will reflect updates to the federal income tax withholding tables for 2018. If you are paid monthly, the update will be reflected in your January 31 paycheck. If you are paid biweekly, the update will be reflected in your February 2 paycheck.

You are not required to do anything at this time. The IRS has stated that employees are not required to complete a new Form W-4 this year. Employees wishing to update or view their current Form W-4 can do so online through employee self-service. Follow the instructions provided here: https://payroll.pitt.edu/employee-self-service/#update_w_4.

The IRS has provided additional information:

If you have any questions, please feel free to submit an inquiry and we will be happy to assist you.

 

January 12, 2018 UPDATE

The IRS just released Notice 1036, which updates the income-tax withholding tables for 2018 to reflect changes made by the tax reform legislation enacted last month. This is the first in a series of steps that the IRS will take to help improve the accuracy of withholding following major changes made by the new tax law. The University of Pittsburgh’s software provider is currently working on these updates in our system. We will continue to provide you with more information, including when these changes will be reflected in pay, as it becomes available.

Additional information:

 

January 5, 2018

Current information from the IRS indicates that they will release withholding guidance in January. With the currently available information from the IRS, Payroll anticipates that changes to withholding and tax rates will go into effect for February paychecks for University employees.

The IRS statement on the 2018 tax changes reads:

“The IRS is working to develop withholding guidance to implement the tax reform bill signed into law on December 22. We anticipate issuing the initial withholding guidance in January, and employers and payroll service providers will be encouraged to implement the changes in February. The IRS emphasizes this information will be designed to work with the existing Forms W-4 that employees have already filed, and no further action by taxpayers is needed at this time.
Use of the new 2018 withholding guidelines will allow taxpayers to begin seeing the changes in their paychecks as early as February. In the meantime, employers and payroll service providers should continue to use the existing 2017 withholding tables and systems.”

Information regarding your 2018 Form W-4 

The IRS has stated that for 2018, the income tax withholding tables will be designed to work with the current Form W-4; therefore, employees are not required to complete a new form this year. Please note however that individuals claiming exemption from withholding in 2017 and want to continue this exemption in 2018 must complete a new Form W-4 by February 15, 2018.

Employees wishing to update or view their current Form W-4 can do so online through employee self-service https://payroll.pitt.edu/employee-self-service/#update_w_4. The IRS is in the process of updating the following two links where you will be able to find additional information

 

If you have any questions, please feel free to submit an inquiry at http://payroll.pitt.edu/contact/ and we will be happy to assist you.

The Payroll Department