IRS issues 2018 percentage method withholding tables

The IRS has issued percentage method withholding tables for wages paid on and after January 1, 2018. The wage-bracket withholding tables will be released in the near future. The tables are to be implemented as soon as possible no later than February 15, 2018. All of the tables will be reproduced in the PAYROLL MANAGEMENT GUIDE beginning at ¶11 in a future release. The annual exemption value is $4,150 (see the exemption value chart below). The IRS also released other guidance. This is all due to the Tax Cuts and Jobs Act of 2017 (P.L. 115-97). The supplemental wage rate for payments that are $1 million or less is 22%. The rate for payments of more than $1 million is 37%. (IRS Notice 1036, Revised January 2018; IRS News Release IR-2018-5, January 11, 2018; IRS Withholding Qs & As, January 11, 2018.)

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