Christopher Ryan
Vice President for Strategic Advisory Services
“When it comes to tax reforms, all relevant departments will have to do their part and chip in to make the most of the opportunities, and minimize the pitfalls.”
Pete: Tax reform brought about by the Tax Cuts and Jobs Act could have a big impact on employers and employees, both in the short terms and beyond. That’s why when it comes to tax reforms, all relevant departments will have to do their part and chip in to make the most of the opportunities, and minimize the pitfalls.
The main challenge is working out whether employees' full-year tax liabilities will be affected significantly enough to warrant correction. If so, that’ll require an updated Form W-4. Not getting this right could potentially result in underwithholding, which see employees owing money, rather than getting a refund.
To help employers get to grips with the changes, the IRS released Publication 15, the "Employer's Tax Guide." This details the changes, and is the official, comprehensive guide. Finance leaders should sit down with their HR, accounting and payroll departments and review it together. That way you stand the best chance of ensuring full compliance, and everyone will understand what employees need to know. (And be sure to look out for state legislation that affects withholding and reporting.)
Identifying and tackling equal pay shouldn’t be difficult. We’ve built a webpage to help you meet your obligation and build a workplace where everyone can thrive.