Update on Impact of Federal Tax Reform

Faculty and Staff,

The IRS has released new withholding tables to reflect the new tax rates approved in the 2017 Tax Cuts & Jobs Act. Here’s what you need to know:

• The withholding changes will be effective for the February 9th biweekly and February 28th monthly payrolls.
• As a result, taxes withheld will decrease and take-home pay will increase for employees who maintain existing work schedules and benefit selections.
• The IRS reports that employees do not have to do anything at this time as the new withholding tables are designed to work with existing W-4 forms employees have on file.
• A new withholding tax calculator and Form W-4 are under development by the IRS and are expected to be released by the end of February.
• Employees who wish to update their withholding in response to the new law or changes in their personal circumstances in 2018 can use the new withholding calculator and Form W-4.

We encourage employees to review additional information about the new withholding tables and answers to frequently asked questions.

Please contact Payroll Services at 859-257-3946 if you have questions.

Eric N. Monday

Executive Vice President for Finance & Administration