Revised February 5, 2018
UB employees will see a change in federal income tax withholdings beginning February 7, 2018 for State employees and February 21, 2018 for UBF employees. For Research Foundation (RF) employees, the change took place in the February 2 paycheck.
The IRS released new federal tax rate tables for 2018. The changes are now implemented and will be reflected in the February 7 pay for State employees, in the February 21 pay for UBF employees and was reflected in the February 2 pay for RF employees. In general, employees will see a reduction in federal income tax withholdings.
The IRS is still working to update its tax forms to reflect the new tax rates. In the interim, the IRS advises employees to continue to use the 2017 W-4 form.
Further updates will be shared when the IRS releases further guidance.
The H.R. 1 - Tax Cuts and Jobs Act was signed into law on December 22, 2017 and became effective January 1, 2018. Due to timing issues, the adjusted tax withholding rates were recently released by the IRS for implementation.