Yesterday the IRS released the new tax tables to use for 2018 based on the passage of the Tax Cuts and Jobs Act of 2017 late in December. A new federal tax rate file has been prepared and is available now for you to update your rates. There are two ways to get the updated rates at the moment:
- Go to Payroll->Setup->Federal Tax Rates, and click on the Update Rates button in the bottom left corner. The program will download the new rates and install them.
- The program automatically checks for updated rates every three days. If you do nothing, within three days the program will notify you that updated rates are available and download them automatically. (The updated rates were first made available last night, so it is possible your system has already downloaded them.)
If you still receive program updates on CD-ROM because you do not have Internet access, Datatech will be mailing new CD-ROM’s with the updated tax tables starting next week.
An update will be made available from the Check for Updates option next week that will also include the updated tax tables.
From the IRS Notice 1036:
This notice includes the 2018 Percentage Method Tables for Income Tax Withholding. Employers should implement the 2018 withholding tables as soon as possible, but not later than February 15, 2018. Continue to use the 2017 withholding tables until you implement the 2018 withholding tables.
How to tell if you have the updated tax rates
Go to Payroll->Setup->Federal Tax Rates, then click on the G/L Accounts tab page. In the bottom right corner of the window, check the Published On date. If this date says 1/11/2018, then you have the new tax rates for 2018.
You can also click on the Get Updates button. If the program responds that your tax rates are current, then you have the updated rates.