With 2017 coming to a close, it's time to roll out 2018 Payroll for Odoo changes! While small, we have outlined the important changes below, broken out by federal and state.
However, before we get into the specific changes that have been implemented, it is important to note that Publication 15, the publication that explains employer's tax responsibilities, has yet to be released for 2018. With the tax reform bill that was signed into law in December, the IRS needs additional time to make changes to the withholding guidelines. The IRS has plans to release the guidelines in January for February implementation and have provided guidance to employers to use the 2017 Publication 15 release for the time being. Their official statement on the 2018 Publication 15 guidelines is below:
"We anticipate issuing the initial withholding guidance in January, and employers and payroll service providers will be encouraged to implement the changes in February. The IRS emphasizes this information will be designed to work with the existing Forms W-4 that employees have already filed, and no further action by taxpayers is needed at this time.
Use of the new 2018 withholding guidelines will allow taxpayers to begin seeing the changes in their paychecks as early as February. In the meantime, employers and payroll service providers should continue to use the existing 2017 withholding tables and systems."
Moving into the changes that have been implemented in the 2018 release of US Payroll for Odoo, check out our breakdown below.
Changes
Federal
Social Security wage limit has increased from $127,200 to $128,400
Ohio
No significant changes to rates; calculations and maximums noted (Possible table rate changes in the future.)
Annual Taxable Wage Base increased by $500 ($9,000 in 2016 and 2017, raised to $9,500 in 2018)
Florida
No changes to rates, calculations and maximums
Setup
As a reminder, remember that you will need to add accounts to the new salary rules as needed. (mainly rules that don't have the word 'Wages' in their title)
Simply git pull or clone the repository over the existing modules. Upgrade the modules in Odoo and update any custom rules you have implemented.
To be continued...
If interested, click here to review all state unemployment insurance taxable base rates .
Check back in January and February for implementation of the new Federal Income Tax Withholding table rates.