Publication Explains Employer Tax Responsibilities
The Internal Revenue Service (IRS) has released Publication 15 (Circular E), Employer’s Tax Guide, for use in 2018. This publication:
- Details employers’ federal tax responsibilities;
- Explains the federal requirements for withholding, depositing, reporting, paying, and correcting employment taxes;
- Lists the forms employers must give to their employees, those that employees must give to the employer, and those that the employer must send to the IRS and Social Security Administration; and
- Features the tax tables to figure the taxes to withhold from each employee.
Highlights of the 2018 publication include the following:
- Social Security and Medicare Tax for 2018. The Social Security tax rate is 6.2% each for the employee and employer, unchanged from 2017. The Social Security wage base limit is $128,400. The Medicare tax rate is 1.45% each for the employee and employer, unchanged from 2017. There is no wage base limit for the Medicare tax.
- 2018 Withholding Tables. The publication includes the 2018 Percentage Method Tables and Wage Bracket Tables for Income Tax Withholding.
- Withholding Allowance. The 2018 amount for one withholding allowance on an annual basis is $4,150.
Click here to access the 2018 IRS Publication 15.
For additional tax information, please visit our section on Employer Tax Laws.
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Please Note: The information and materials herein are provided for general information purposes only and are not intended to constitute legal or other advice or opinions on any specific matters and are not intended to replace the advice of a qualified attorney, plan provider or other professional advisor. This information has been taken from sources which we believe to be reliable, but there is no guarantee as to its accuracy. In accordance with IRS Circular 230, this communication is not intended or written to be used, and cannot be used as or considered a ‘covered opinion’ or other written tax advice and should not be relied upon for any purpose other than its intended purpose.
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