2018 Tax Law Changes
Release Date: 12/29/2017
The 2018 tax reform law went into effect December 22, 2017. These changes affect how Federal Withholding taxes are calculated within the Elliott Payroll module.
Personal exemptions, including exemptions available for qualified dependent children and relatives, have been repealed. The personal exemptions setting can be found in the Employee Maintenance screen, field 35.
The valid entries for this field are:
1. 99 to indicate the calculate payroll application should only use field 40 (added FWT) as the FWT amount
2. 98 to indicate that the Added FWT field is a fixed percent used to calculate FWT for the employee
3. Otherwise, this field should be set to zero to indicate that no special FWT calculation is required
The Federal Withholding Allowance can be found in the Payroll Setup Application in field 1 on the Federal Tax Table screen.
This amount should be set to zero.
This Knowledge Base article will be updated once the IRS releases new guidance on payroll deductions in the new year.
Please also reference the following KB article:
CLS
Related Articles
2020 W-4 Employee Withholding Certificate Support
Release Date: 12/10/19 Version: 8.2 and up The IRS has issued a redesigned 2020 Form W-4 (Employee’s Withholding Certificate). The new form no longer uses withholding allowances. Instead, there is a five-step process for determining employee ...AP1600 Accounts Payable A/P Setup
Utilities Setup A/P Setup Application Overview A/P Setup allows you to turn certain features of the A/P package on and off and set package-wide defaults. This allows you to tailor the package to your own needs and increase throughput. The features, ...Avalara Setup Procedures - Elliott Configuration
Release Date: 4/28/23 Version: 8.6 and above Revised: 9/11/23 Elliott Configuration After installing Elliott V8.6 for the first time, you will need to make some configuration changes. Bring up <ElliottRoot>\Bin86\EL860CF.exe utility or alternatively ...DEDCDMNT Payroll Deduction/Earning Code File Maintenance
Deduction/Earning Code File Maintenance Application Overview The Deduction/Earning Code File maintains the file, which contains the deduction, and earnings codes you wish to use. This file should contain all possible employee pay deductions and ...ARCTLMNT Accounts Receivable A/R Setup
A/R Setup Application Overview A/R Setup is not an application that you will be running very often. In this application, you will answer some questions that tailor the Accounts Receivable package to the way you do accounting in your company. For ...