2018 Tax Law Changes


Release Date: 12/29/2017

The 2018 tax reform law went into effect December 22, 2017. These changes affect how Federal Withholding taxes are calculated within the Elliott Payroll module.

Personal exemptions, including exemptions available for qualified dependent children and relatives, have been repealed. The personal exemptions setting can be found in the Employee Maintenance screen, field 35.



The valid entries for this field are:

1. 99 to indicate the calculate payroll application should only use field 40 (added FWT) as the FWT amount
2. 98 to indicate that the Added FWT field is a fixed percent used to calculate FWT for the employee
3. Otherwise, this field should be set to zero to indicate that no special FWT calculation is required

The Federal Withholding Allowance can be found in the Payroll Setup Application in field 1 on the Federal Tax Table screen.



This amount should be set to zero.

This Knowledge Base article will be updated once the IRS releases new guidance on payroll deductions in the new year. 

CLS

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