Payroll Processors Worry There May Not Be Enough Time to Calculate Tax Bill Changes

By:
Chris Gaetano
Published Date:
Dec 13, 2017
TaxWorry

With Congress working to pass a massive tax reform bill before the end of this year, and with many of the provisions within that bill set to take effect at the beginning of next year, payroll processors warned legislators that there may not be enough time to calculate all the changes that would take effect, causing major disruption to hundreds of millions of workers, according to the Wall Street Journal. These views were expressed in a letter sent from the nation's largest payroll group, the American Payroll Association, which represents 21,000 members who have expressed deep concern about what they call the herculean task of calculating an entirely new withholding system in an incredibly short amount of time. Beyond already-known proposed changes, like doubling the standard deduction and eliminating most personal exemptions, there remain unanswered questions about the withholding rate for things like bonuses, commissions, stock compensations and other payments, according to Journal. The APA recommended a transition period allowing employers to use the 2014 W-4 forms even though it won't reflect the new law, which would give the IRS time to release new forms and give everyone time to absorb the impact of the new law. 

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