January 5, 2018
To: All SDSU Research Foundation Employees
From: Lynda Taylor, Payroll Supervisor, SDSU Research Foundation
Subject: 2018 Tax Information
Happy New Year!
The enactment of the 2017 tax act signed into law on December 22, 2017 means that the IRS will issue revised tax withholding tables for employee paychecks.
The IRS is currently creating new federal tax tables to match the changes approved last month and expects to issue initial withholding information sometime during the 2018 tax year. The IRS will “continue to work closely with the nation’s tax professionals and software community as preparations continue for the 2018 tax filing season.”
What does this mean to you?
- This means that the tax table used in 2017 to determine your federal withholding amount(s) will be the same tax table used in 2018 until updated federal tax tables are issued.
- • There are no changes to FICA percentages (Social Security 6.2% and Medi-care 1.45%)
- New 2018 W-4 forms are not available at this time.
- Deferred compensation and other benefit deductions will be deducted on the first pay of 2018.
2018 State Tax Information
The California Employment Development Department has released the 2018 State Disability Insurance (SDI) withholding rate. The rate changed from 0.9% for 2017 to 1.0% for 2018.
Please contact your CPA, tax accountant or financial advisor for tax advice and individual filing information.