- Jan
- 16
- 2018
New Tax Law and Your Payroll Deductions
On December 22, 2017 President Trump signed the Tax Cuts and Jobs Act, into law. The legislation, which marks the most sweeping tax changes in 30 years, will affect Federal Tax withholding in 2018 and beyond. Because this tax legislation was passed so late in 2017, the Internal Revenue Service did not issue withholding guidance until mid January.
Update from payroll team – January 17, 2018:
- The Northwell payroll team recently updated system software to coincide with the Internal Revenue Service release of income-tax withholding tables for 2018. The change was required to align with legislation enacted last month by the Tax Cuts and Jobs Act of 2017 (TCJA).
- As a result, beginning with the semi-monthly payroll dated January 22, and all payrolls thereafter, will be subject to the revised withholding tables.
- While further updates may be released by the IRS, no action is required from our employees at this time.
- Those considering edits to their withholding elections in response to the new law, or changes in their personal circumstances in 2018, are encouraged to consult their personal tax advisor.
The payroll team will closely monitor for additional updates and provide information or instruction as it is made available.
Lovely. Looks like lose-lose all around for Long Islanders. Thanks, GOP.
Why Do you feel that it’s a lose-lose? 80-90% of American workers are supposed to receive an increase in their paychecks with this new tax cuts.
I believe that increase will only be for first year . The rich will be the main beneficiaries.
Will there be retro-pay for time worked under the new Tax Deductions which are signed into law for 2018?
Thanks
Ryan – The Internal Revenue Service has not yet published withholding guidelines or revised tables to coincide with the Tax Cuts and Jobs Act. Our payroll team will closely monitor for updates and work to implement once they are published. Specific employee inquiries regarding impact may referred to the Payroll general mailbox once the additional information is made available. Thanks for your patience!
Sally – Thank you for your response. How about January 1st 2018 – January 22nd 2018; will there be compensation from Northwell for the time worked under the new tax bracket during this time period? (As we were taxed according to the 2017 guidelines in 2018)
Thanks
Hey Ryan – Sorry for the delay, but I wanted to make sure this answer came from our experts in payroll. Hope all that follow our blog will benefit from this response. Kudos to our payroll team for being ahead of the game. It is not an easy task. From Northwell’s payroll team: Federal income withholding is a pay-as-you-go tax and recent updates released by the IRS were not retroactive. Therefore, the 2017 withholding tables were accurately applied to all payments issued before implementing the revised 2018 tables. Ultimately, if the amount withheld throughout the year is more than the… Read more »
Could we get a look at the IRS tax withholding table?
I’m sorry. I don’t quite understand this…so what does this mean for payroll? what I would like to know is; is money being taken or given depending on circumstances? this is confusing to someone like myself who doesn’t understand gov’t talk
Vanessa and others – this response comes directly from our payroll team, who are adjusting deductions in our paycheck due to new tax law. I hope the explanation helps. The Northwell Health payroll team is not equipped to provide tax advice tailored to employee income and personal goals. It’s best to check in with a professional tax or financial advisor. In addition: The Internal Revenue Service recently released Notice 1036, with new withholding criteria and instructions for employers to make changes to their payroll systems as soon as possible. The updates were required to reflect the changes in tax rates… Read more »
I am optimistic for the new tax law. Northwell will benefit from a corporate tax rate reduction and that will translate into opportunities for growth for the health system. That translates into tons of opportunities: whether that means hiring more staff to distribute workload, better equipment, more hospitals joining the system, or better compensation like pay or benefits – its a win win for the health system. Our tax system on long island is corrupt – SALT deductions incentivize higher taxes. This new law on the books caps the “benefit” of higher taxes. If you don’t like the law I… Read more »
Can we expect pay increases /bonus from NW as a result of the new tax laws ?
Margaret – this is not a bonus from Northwell Health. Review your deductions with your tax accountant for a better understanding of your withholdings.
Hi,
Would like to know when is the new tax will become affective, i just got my paycheck and with the same tax deduction from 2017 and the paycheck was dated after jan 22.
Thank you
Your January paycheck should be reflecting the new tax law table. Contact our payroll department at payroll@northwell.edu