Payroll Tax Changes Due to Tax Reform
Federal tax reform legislation approved late last year has been implemented and this memo will provide you with information on the federal tax withholding changes effective for the 2018 tax year. All Tulane employees will begin to see the changes outlined below in their paychecks this month.
Payroll Withholding
- New federal withholding tables for 2018 are in effect and reflect the changes in tax rates and tax brackets, increase in standard deduction and elimination of personal exemption.
- New federal withholding tables are designed to work with your existing W-4.
- Federal tax withholding rate for supplemental payments (bonus, contract pay, retirement supplement, etc.) has decreased from 25% to 22%.
No action is required by you at this time since federal withholding tables are designed to reflect the new law and work with your existing W-4.
At any time during the year, you can log in to Employee Self-Service to review your current W-4 and make adjustments.
More information regarding 2018 withholding can be found on the IRS website at https://www.irs.gov/forms-pubs/legislative-impact-on-tax-forms.
If you have questions, please contact Payroll at hr@tulane.edu or 504-865-5346.