On December 7, the IRS acknowledged that several IRS forms and publications, including the 2018 federal withholding tables, are likely to be issued later than in recent years, due to the likely enactment of H.R. 1, The Tax Cuts and Jobs Act, before the end of the year. The recently-passed Senate bill and the previously-passed House version of the bill need to be reconciled before the bill is signed into law, but both bills include changes to the income tax rates, the standard deduction, and personal exemptions, effective for tax years beginning after December 31, 2017, so the withholding tables and possibly processing programs will need to be substantially revised.
Even if new tax rates take effect on January 1, 2018, it would take some time to issue the 2018 withholding tables as the IRS will need time to analyze all of the changes in the new legislation. As a result, employers may need to continue using the 2017 federal withholding tax tables until sometime in 2018. PeopleSoft will deliver any product updates or modifications that may be required after the IRS has issued final guidance on the legislation.
In addition to the federal withholding tables, the new version of Form W-4 (Employee's Withholding Allowance Certificate), and IRS Publications 15 ((Circular E), Employer's Tax Guide), 15-A (Employer's Supplemental Tax Guide), and 15-B (Employer's Tax Guide to Fringe Benefits), are also likely to be issued later than in previous years.
The IRS promised to keep payroll professionals up-to-date on the latest developments. The PeopleSoft Payroll for North America development team is monitoring the situation closely.