You are here: American University Finance Communications 2018 New Federal Tax Withholding Rates Take Effect with January 26 Biweekly Pay and January 31 Monthly Pay

Back to top

Memorandum January 25, 2018

To:
Faculty, Staff and Student Workers
From:
Astrid Bonilla, Interim Director of Payroll
Subject:
New Federal Tax Withholding Rates Take Effect with January 26 Biweekly Pay and January 31 Monthly Pay

Beginning January 26 for people who are paid biweekly and January 31 for those who are paid monthly, you may notice changes to your pay. The changes are the result of the new federal tax withholding rates (IRS Notice 1036). Further changes may be upcoming, as new state withholding rates are announced. 

The IRS also plans to have a new withholding tax calculator available on their website by the end of February. The tax calculator can help you determine if you need to update the number of withholdings on your Form W-4 in response to the new law, or if you have changes in your personal circumstances. The Form W-4 may be found on the Payroll website. 

Note: As the IRS has not yet published a 2018 Form W-4, Payroll continues to use the 2017 Form W-4. Once the 2018 W-4 is published, the Payroll website will be updated with the new form.

Employees with specific questions related to personal tax liability should seek advice from tax professionals. Additional information is available from the IRS: https://www.irs.gov/pub/irs-pdf/n1036.pdf.