The Internal Revenue Service (IRS) has released income tax withholding information for 2018 (Notice 1036) that shows new rates for employers to use. The 2018 withholding tables reflect changes due to the tax reform legislation enacted last month. A withholding table shows payroll service providers and employers how much tax to withhold from employee paychecks, given each employee’s wages, marital status and number of claimed withholding allowances.
The IRS instructs employers to begin using the 2018 withholding tables as soon as possible but no later than Feb. 15, 2018. Employers should continue to use the 2017 withholding tables until they implement the 2018 withholding tables.
Once employers implement the new tables, many employees will begin to see changes in their paychecks reflecting the tax reform.
The new tax law makes a number of changes for 2018 that affect individual taxpayers. The new tables reflect the:
More information on the updated withholding tables is available in the IRS’s Withholding Tables Frequently Asked Questions.
W-4 Update Coming Soon
The IRS is currently working on revising the Form W-4 to reflect additional changes in the new law, such as changes in available itemized deductions, increases in the child tax credit, the new dependent credit and the repeal of dependent exemptions.
Until a new Form W-4 is issued, employees and employers should continue to use the 2017 Form W-4.
Employees do not need to fill out a new W-4 right now — the new withholding tables are designed to work with the Forms W-4 that workers have already filed with their employers to claim withholding allowances. This, according to the IRS, will minimize the burden on taxpayers and employers.
The IRS is also revising the tax withholding calculator on their website to help employees update their withholding in response to the new law or other changes in personal circumstances in 2018. The IRS anticipates this calculator should be available by the end of February. Taxpayers are encouraged to use the calculator to adjust their withholding once it is released.
On the Horizon
The IRS plans to help educate taxpayers about the new withholding guidelines and calculator. The effort will be designed to help workers ensure that they are not having too much or too little withholding taken out of their pay.
Check out the IRS’s Resources for Tax Law Changes for more information.
For 2019, the IRS anticipates making further changes involving withholding. The IRS will work with the business and payroll community to encourage workers to file new Forms W-4 next year and share information on changes in the new tax law that impact withholding.
“The IRS appreciates the help from the payroll community working with us on these important changes,” said Acting IRS Commissioner David Kautter, in a statement. “Payroll withholding can be complicated, and the needs of taxpayers vary based on their personal financial situation. In the weeks ahead, the IRS will be providing more information to help people understand and review these changes.”
Want to know more about deductions from wages? CalChamber members can find forms and Q&Asin the HR Library. Not a member? See how HRCalifornia can help you.
The City of Oxnard is overseeing a project to construct an overpass on Rice Avenue over Fifth Street and the UPRR tracks. The purpose of the infrastructure enhancement is to improve safety at the busy intersection and to streamline traffic and goods movement on Rice Avenue. The overpass will eliminate the need for drivers to navigate the railroad tracks, where numerous accidents have occurred.
Justin Link, Transportation Services Manager for the City of Oxnard, and Chris Hooke, Deputy Director for the County of Ventura Transportation Department, will make the presentation. Mr. Link recently joined the city and oversees the development of transportation improvements for the City. He has over 12 years of experience in the private sector in traffic and transportation project development. Mr. Hooke has been with the County’s Transportation Department for 18 years and has overseen the construction of improvements to the County road system.
Please join us on February 8 at the Knowledge & Networking Lunch to find out all the details of the project. The lunch will be at River Ridge Golf Club, 2401 W. Vineyard Avenue. Check-in and networking start at 11:30. Lunch is at noon, with the program to follow.
Advance reservations are requested and are discounted if made by February 5. Click here to sign up.
Oxnard sure has more than its fair share of challenges these days. With the city council recall looming, the city being threatened to create electorate districts, and changes in the top management at city hall it’s a wonder anything gets done. But aside from all of the distractions, we should count our blessings.
Last month when the Thomas Fire was raging, I remember saying to myself on numerous occasions, “I am so lucky to not be threatened by this fire and can sleep in my own bed without concern that a disaster is going to strike me.”
Oxnard is not vulnerable to wild fires. The risk is low because we don’t have vegetation-covered hillsides. Kind of makes the Oxnard Plain a bit more appealing. Likewise, we don’t have to worry about the devastation of mud and landslides. I’m still trying to comprehend what happened in Montecito.
I’m not sure what I will be saying after the “Big One” hits Southern California when we could be subject to liquefaction or a tsunami. But for now, I am really happy I both live and work in Oxnard!
Now, if we could just do something about the politics in our city…
Governor Edmund G. Brown Jr. this week proposed the final budget of his gubernatorial career, proposing to spend a record $190 billion without raising taxes and setting aside $13 billion in a rainy-day reserve.
For the first time since 1998, it appears that a retiring governor will not pass along a budget deficit to his successor. Nonetheless, the Governor insisted that fiscal prudence must guide decisions this year, emphasizing that “we prepare for the recession, not when it comes, but years before.”
The Governor noted that by the end of the next fiscal year, the economic expansion will be the longest post-war period of uninterrupted growth. A moderate recession, according to the Department of Finance, would drop state revenues by more than $20 billion annually.
The day after the Governor released his budget proposal, the California Chamber of Commerce hosted Department of Finance Director Michael Cohen at a Luncheon Forum where he provided attendees with details on the proposed budget.
With respect to education, the administration proposes fully funding the Local Control Funding Formula, a finance allocation that eliminates most categorical funding programs in favor of aiming supplemental funding toward poor students, English learners and children in foster care. Overall spending on public schools and community colleges will have increased by 66% in the seven years since the depths of the recession.
In the Governor’s proposal, funding for the University of California will increase by about 2%, and for the California State University by 1%.
For community colleges, the budget includes an overall increase of 4% and implements legislation from last year that waives tuition for first-time, full-time students. The budget also proposes the creation of an entirely online two-year degree aimed at working Californians.
To address the state’s long-term workforce needs, the Governor proposes providing $200 million to support K–12 career-technical education programs that are aligned with industry skills, and additional funding for industry experts to support these programs.
The idea is to maintain a predictable, targeted and sustained funding stream to support an industry/education workforce development collaboration.
Following up on last year’s increase in transportation revenues, the administration plans to spend $4.6 billion in the next fiscal year on various highway and bridge maintenance, rehabilitation and operational improvements.
The budget also includes funds to restart the state’s construction program to complete 10 courthouses.
The state’s judicial branch will be provided additional funding to support efforts by the Judicial Council to improve and modernize trial court operations.
The Legislature in 2017 extended the cap-and-trade program, which is designed to enable reductions in greenhouse gas emissions, through 2030.
A consequence of this extension was to stabilize the existing program and ensure a steady stream of new revenues to the state, potentially amounting to billions in new taxes for the Legislature to spend. The Governor will outline his plan for new spending later this month in his state-of-the-state address.
The full summary of the Governor’s budget proposal can be found at www.ebudget.ca.gov.
Have you ever thought about getting more involved in local politics? Are you planning to run for elected office? Do you want to learn more about the nuts & bolts of political campaigns? Join the Chambers of Commerce Alliance of Ventura and Santa Barbara Counties for our 2018 Campaign School and learn the basics of running for office from seasoned veterans of the political campaign trail.
Learn more about:
The Campaign School will be taught by a representative from the Leadership Institute, which is a nationally recognized nonprofit organization.
The Campaign School will be held Saturday, January 20, 2018 from 9:00 am - 1:00 pm. The cost is $25 per person. Advanced reservations are required and can be made at www.venturachamber.com/campaign. Event will be held at the Oxnard Chamber of Commerce,
400 E. Esplanade Drive Suite 302, Oxnard, CA 93036.
About the Chambers of Commerce Alliance
The Chambers of Commerce Alliance of Ventura & Santa Barbara Counties serves as a useful resource and effective advocacy partner for regional chambers that are interested in strengthening our business climate through better policy making. Originally formed as the Regional Legislative Alliance, the Chambers of Commerce Alliance changed its name in 2009 and re-launched its web site and advocacy programs. The Alliance prides itself for its regular presence in the State Capitol and influence on a variety of state, local and federal issues.
The Alliance is guided by its policy platform, which is adopted annually and serves as our advocacy agenda. Positions are taken by our board of directors with following input from our member chambers and strategic partners along with consideration given to existing positions and historic stances. The goal is to support legislative efforts that improve the region’s business climate and to oppose proposals that will likely cause job losses. The Alliance is funded through non-public sources, and all proceeds are invested directly into Alliance operations with priority given to advocacy. Also, the Alliance accepts funds from regional employers the most generous of whom are recognize as Capitol Circle Members. For more information, please email firstname.lastname@example.org. Membership is limited to local chambers of commerce, and strategic partners are encouraged to participate in the Alliance. Each chamber member is permitted to cast one vote per issue.