The article below was sent to us by our payroll services vendor. Please consult a licensed tax adviser for more details if you need them.
From Paylocity :
The Tax Cuts and Jobs Act is a U.S. Congressional bill to amend the Internal Revenue Code of 1986, effectively altering the rate of taxation for individuals and businesses. Major components include:
- Reducing tax rates for individuals and businesses
- Increasing the standard deduction and family tax credits
- Limiting the mortgage interest deduction
- Limiting the Alternative Minimum Tax for individuals and eliminating it for corporations
- Reducing the number of estates impacted by the estate tax
- Reducing the penalty for the individual mandate of the Affordable Care Act
There are several provisions of the law affecting businesses and individuals alike, some of which are of particular concern to payroll management. In addition to lowering tax rates, the law also eliminates personal exemptions and a few pre-tax benefits.
For more information on how this will impact you as an employer and payroll professional, please review the tax alert and send your employees the employee notice by clicking the buttons below.
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