To: University Employees
From: Walter Miller, Director of Payroll Services
Dear University Employee,
Beginning with the February 16, 2018, biweekly paycheck, all biweekly and monthly paychecks subject to federal tax withholdings reflect the 2018 federal tax withholding rates issued by the Internal Revenue Service (IRS). As we shared with you in a February communication, the federal tax rate changes are a part of the Tax Cuts and Jobs Act passed in December 2017.
The law increased the standard deduction, removed personal exemptions, increased the child tax credit, limited or discontinued certain deductions and changed the tax rates and brackets. Due to these changes along with others, the IRS is recommending that all employees perform a paycheck checkup by using the Withholding Calculator on <a href="https://www.irs.gov/payments/tax-withholding"https://www.irs.gov/payments/tax-withholding. This website contains more information concerning the Withholding Calculator and Federal Tax Withholding Tables.
The Withholding Calculator can help employees estimate their 2018 annual income tax liability, and based on its recommendations, can help prevent too little or too much income tax from being withheld. The withholding calculator compares the annual income tax estimate to the employee’s current income tax withholding and can help them decide if they need to change their withholding. Employees using the calculator will find it helpful to have their completed 2017 tax return accessible and most recent paystub. Employees are also encouraged to contact their tax professional should they have questions on how to accurately complete the information contained on the withholding calculator.
Employees can use the results from the Withholding Calculator to determine if they should complete a new Form W-4, Employee’s Withholding Allowance Certificate. Form W-4 can be submitted electronically via the ConnectCarolina Self-Service menu.
If you have problems accessing the ConnectCarolina Self-Service items, please contact the Help Desk. If after working with the Help Desk you are unable to update your W-4 please contact Payroll Services at payroll@unc.edu for assistance.