Tax Cuts and Jobs Act Will Affect US Payroll Compliance. Are You Covered?
The US Tax Cuts and Jobs Act, signed by President Trump on December 22nd, ushers in reform that will affect both individual and corporate income taxes. The Act, whose changes took effect January 1st of this year, reduces tax rates within all brackets for Married and Single taxpayers as well as creates a flat corporate tax rate of 21%.
Further alterations include an increase in the standard deduction, elimination of personal tax exemption, and elimination of several previous tax deduction opportunities, such as moving expenses.
US and international payroll professionals will need to adjust income tax withholding per new withholding tables once released by the IRS, and will potentially see changes to the existing Federal Form W-4.
The Changing Global Landscape
While the idea of making these modifications to a current payroll system can seem daunting to any organization, changes of this scale are commonplace throughout the world.
In January 2016, Japan’s Personal Tax Identification System went into effect, requiring significant technology and process changes for companies.
And after years of planning and false starts, eSocial in Brazil goes into effect in 2018 and requires significant new electronic reporting requirements of HR and Payroll data to the Government.
Whether in the Americas or Asia, NGA HR successfully supports multinational employers through the system and process changes required to implement these legislative changes to global payroll. That support means understanding implications of collecting this new data, making the right technology changes and reengineering HR & payroll processes.
Realizing that a one-size-fits all approach does not benefit every multinational employer, we tailored our multi-country payroll approach to each organizations’ software configuration, global footprint, process requirements and more, combining process standards with flexible configuration options.
Download the Global Payroll Complexity Index '17 Report and find out how complex payroll processing is in your country.
While the changing global payroll and legal compliance landscape can be fast-paced and often complex, NGA HR's HR and Payroll experts continue to stay up-to-date on the latest requirements to help you navigate the evolving global payroll services and tax landscape, whether you need to adapt to upcoming regulations in the US, or in any other of the 188 countries we cover.