Late in 2017, President Trump signed legislation that, among other changes, lowers many individual tax rates. The legislation is complicated and we encourage you to consult your tax advisor for questions about the impact to your overall tax situation.
Some changes in the new tax law related to payroll withholding are new federal withholding tables reflecting the changes in tax rates and tax brackets, increase in standard deduction, and elimination of personal exemptions. Also, the new federal withholding tables are designed to work with existing W-4s that employees have on file.
We will offer further detailed information as we are able to; for now we are offering the following Q&A's based on recent questions received.
• When will I see the effect of the new tax rates on my check?
We are working with Oracle and their vendors to update our systems with the new tables. We expect paychecks issued in early February to reflect the updated tax rates.
• Do I have to change my withholdings or submit a new W-4 form?
Not at this time. Your 2017 W-4 selections remain in effect. We will inform the community when the IRS releases a new W-4 form.
• If I want to make changes through my W-4, when will it be available?
The IRS has announced that it will release the new W-4 form by Feb 15, 2018. After that release we will be happy to assist you with questions regarding changes to your withholdings.
• Will there be more information available at Caltech, and how can I find out about it?
Once we get sufficient information, we will offer workshops to educate the community. Please check back on this site or call the Payroll Hotline, extension 8668.
In the meantime, please visit www.IRS.gov for information on this topic: