Payroll and Tax Reform 2018

Josh TrentUncategorized

We, at ChurchTrac, strive to give you the best tools for ministry at a price that you can afford. We have been achieving this successfully for well over ten years. In an effort to do that, we do our best to keep you, our partners in ministry, informed the best we can regarding the application.

If you are not aware, the House and Senate are currently working to pass a tax bill that could bring substantial changes to how the payroll taxes for non-clergy employees are calculated. If passed, these changes could take effect beginning January 1, 2018.

However, we don’t think the new tax tables for calculating federal withholding will be made available until later in the year(2018). This means that you will more than likely need to make some retroactive changes to the amount withheld from employee paychecks. This would only be an issue with non-clergy employees, as Federal Withholding is not calculated or withheld on clergy paychecks. Additionally, this should not impact Social Security or Medicare amounts withheld, as there are no plans before Congress to adjust these values.

Our plan is to implement the currently proposed IRS tax tables for 2018, and make adjustments if a new tax bill is passed and signed in to law. We will continue to do our best to keep you informed along the way.

If you have any questions, please do not hesitate to reach out to us.