Tax Cuts and Jobs Act Update
To: The Caltech Community
From: Margo Steurbaut, Vice President of Administration and Chief Financial Officer
Date: March 12, 2018
Re: Tax Cuts and Jobs Act Update
The Tax Cuts and Jobs Act was approved in December 2017. The Act resulted in changes to tax rates and brackets, and deductions for federal taxes at the new tax rates were reflected in paychecks starting on February 1, 2018.
The Act also resulted in changes to limits on deductions for home mortgage interest, property taxes, and state income taxes, which may have an impact on the amount of tax owed by each individual or household. I encourage you to review your current level of tax withholding carefully to determine if you should make any changes based on the new tax law.
The IRS has recently issued a new 2018 W-4 form, which includes a worksheet and a link to the new IRS withholding calculator, an online tool that guides users through the withholding evaluation process. If you need additional assistance, however, Payroll will be hosting workshops later this month to help you understand these changes so that you can review your current levels of withholding. Those dates will be announced as soon as they are scheduled.
If you wish to make changes immediately, please print the 2018 W-4 form and deliver it to the Payroll office in Keith Spalding Building, 1200 E California Blvd, 2nd Floor, or fax to (626) 628-3882. For security reasons, please do not send W-4 forms via email.