2018 Upcoming Legislative Changes Affecting Payroll Tax Calculation

Payroll Tax Calculation

As is often the case when we turn the page to a new calendar year, new laws and regulations take effect that dictate how payroll taxes (also known as withholding taxes) are calculated.  Below are some of the upcoming changes that will become effective in the new year:

Federal Legislative Payroll Changes

  • The Employer FICA Tax Wage Base has been updated to $128,700, effective 1/1/2018
  • The FICA Tax Wage Base has been updated to $128,700, effective 1/1/2018
  • The Employer RRTA Tier I Tax Wage Base has been updated to $128,700, effective 1/1/2018
  • The RRTA Tier I Tax Wage Base has been updated to $128,700, effective 1/1/2018
  • The Railroad Unemployment Tax Wage Base has been updated to $1,560, effective 1/1/2018

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State and Local Legislative Payroll Changes

Arkansas

  • The Arkansas State Unemployment Tax Wage Base has been updated to $10,000, effective 1/1/2018.

Colorado

  • The Colorado State Unemployment Tax Wage Base has been updated to $12,600, effective 1/1/2018.
  • The Colorado Bond Surcharge Tax Wage Base has been updated to $12,600, effective 1/1/2018.

Delaware

  • The Delaware State Unemployment Tax Wage Base has been updated to $16,500, effective 1/1/2018.
  • The Delaware Training Tax Wage Base has been updated to $16,500 and the Rate has also been updated to .095%.

Iowa

  • The Iowa State Unemployment Tax Wage Base has been updated to $29,900, effective 1/1/2018.
  • The Iowa Administrative Surcharge Tax Wage Base has been updated to $29,900, effective 1/1/2018.
  • The Iowa Reserve Fund Tax Wage Base has been updated to $29,900 effective 1/1/2018.

Kentucky

  • The Kenton County, Kentucky OLF Tax Wage Base has been updated to $128,700, effective 1/1/2018.
  • The Simpson County, Kentucky OLF Tax Wage Base has been updated to $128,700, effective 1/1/2018.
  • The Alexandria, Kentucky OLF Tax Wage Base has been updated to $128,700, effective 1/1/2018.
  • The Cold Spring, Kentucky OLF Tax Wage Base has been updated to $128,700, effective 1/1/2018.
  • The Covington, Kentucky OLF Tax Wage Base has been updated to $128,700, effective 1/1/2018.
  • The Crestview Hills, Kentucky OLF Tax Wage Base has been updated to $128,700, effective 1/1/2018.
  • The Florence, Kentucky OLF Tax Wage Base has been updated to $128,700, effective 1/1/2018.
  • The Fort Wright, Kentucky OLF Tax Wage Base has been updated to $128,700, effective 1/1/2018.
  • The Franklin, Kentucky OLF Tax Wage Base has been updated to $128,700, effective 1/1/2018.
  • The Newport, Kentucky OLF Tax Wage Base has been updated to $128,700, effective 1/1/2018.
  • The Wilder, Kentucky OLF Tax Wage Base has been updated to $128,700, effective 1/1/2018.

Maryland

  • The Cecil County, Maryland Tax Rate has been updated to 3%, effective 1/1/2018.

Montana

  • The Montana State Unemployment Tax Wage Base has been updated to $32,000, effective 1/1/2018.
  • The Montana Administrative Fund Tax Wage Base has been updated to $32,000, effective 1/1/2018.

Nevada

  • The Nevada State Unemployment Tax Wage Base has been updated to $30,500, effective 1/1/2018.
  • The Nevada Bond Assessment Tax Wage Base has been updated to $30,500, effective 1/1/2018.
  • The Nevada Career Enhancement Program Tax Wage Base has been updated to $30,500, effective 1/1/2018.

New Jersey

  • The New Jersey State Unemployment Tax Wage Base has been updated to $33,700, effective 1/1/2018.
  • The New Jersey Employer SDI Tax Base has been updated to $33,700, effective 1/1/2018.
  • The New Jersey Family Leave Insurance Tax Wage Base has been updated to $33,700, effective 1/1/2018.
  • The New Jersey SDI Tax Wage Base has been updated to $33,700, effective 1/1/2018.
  • The New Jersey Family Leave Insurance Tax Rate has been updated to .09%, effective 1/1/2018.
  • The New Jersey SDI Tax Rate has been updated to .19%, effective 1/1/2018.
  • The New Jersey Work Force Development/Supplemental Work Force Tax Wage Base has been updated to $33,700, effective 1/1/2018.

New Mexico

  • The New Mexico State Unemployment Tax Wage Base has been updated to $24,200, effective 1/1/2018.

New York

  • The New York State Unemployment Tax Wage Base has been updated to $11,100, effective 1/1/2018.
  • The New York Reemployment Fund Tax Wage Base has been updated to $11,100, effective 1/1/2018.

North Carolina

  • The North Carolina State Unemployment Tax Wage Base has been updated to $23,500, effective 1/1/2018.

Ohio

  • The Bedford, Ohio City Tax Rate has been updated to 3.0% and Credit Limit updated to 2.25%, effective 1/1/2018.
  • The Canal Fulton, Ohio City Tax Credit Limit has been updated to .75%,effective 1/1/2018.
  • The Heath, Ohio City Tax Rate and Credit Limit have been updated to 2%, effective 1/1/2018.
  • The Munroe Falls, Ohio City Tax, 39-000-1065085-CITY-000, Tax Rate and Credit Limit have been updated to 2.25%, effective 1/1/2018.
  • The Swanton, Ohio CityTax Rate has been updated to 1.5%, effective 1/1/2018.effective 1/1/2018
  • The Wapakoneta, Ohio City Tax Rate and Credit Limit have been updated to 1.5%

Oklahoma

  • The Oklahoma State Unemployment Tax Wage Base has been updated to $17,600, effective 1/1/2018.

South Carolina

Washington

  • The Washington State Unemployment Tax Wage Base has been updated to $47,300, effective 1/1/2018.

Wyoming

  • The Wyoming State Unemployment Tax Wage Base has been updated to $24,700, effective 1/1/2018.

CheckmateHCM solution’s online payroll software is continually updated with the latest legislative changes to ensure we help our clients in continually processing accurate and compliant payrolls. This partnership aids them in focusing their time and efforts on the more important aspects of human capital management like employee engagement and retention, talent acquisition and helping each employee reach his/her individual best through strategic performance management, training and succession planning.

You might also be interested in our 2018 Minimum Wage Rates by State Resource Page:

Payroll Processing Video