The Payroll Report: Week of Dec. 11

Here’s a roundup of payroll issues covered last week:

Federal:

Last week, House and Senate conferees unveiled tax reform legislation that would modify the seven tax brackets for individuals to have rates of 10, 12, 22, 24, 32, 35 and 37 percent starting Jan. 1, 2018. The House and Senate plan to vote on the bill the week of Dec. 18.

The IRS plans to issue Notice 1036 for percentage method income tax withholding brackets in January, after the tax bill is signed into law.

On Dec. 14, the IRS released the 2018 standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. The standard mileage rate for transportation or travel expenses involving the business use of an automobile is to be 54.5 cents a mile, the rate for medical or moving purposes is to be 18 cents a mile, and the rate for charitable purposes is to be 14 cents a mile.

The Labor Department extended the comment period for proposed rules that would allow tip-sharing arrangements to be established by employers that pay the federal minimum wage and do not claim a tip credit. Comments are to be accepted until Feb. 5, about one month more than the previous Jan. 4 deadline.

State:

A Florida appeals court halted a Miami Beach, Fla. ordinance that was to raise the city’s minimum wage to 10.31 an hour starting Jan. 1. The hourly minimum wage in Miami Beach is to instead conform to the state's hourly minimum wage, which is to rise to $8.25 from $8.10 on Jan. 1. Florida’s tipped-worker minimum cash wage is to rise to $9.35 from $8.50.

Illinois released income tax withholding tables for 2018. The flat withholding rate of 4.95 percent is to be unchanged and the standard exemption is to be $2,000.

Alabama, Indiana, Kansas, Maine, Minnesota,Texas, and Virginia released unemployment tax rates for 2018.

Tennessee released its 2018 unemployment-taxable wage base.

By Jazlyn Williams

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