Due to the tax reform legislation enacted by Congress in December, many employees will notice a significant decrease in the amount of federal taxes withheld from their paychecks. Core-CT has been updated with the new IRS tax withholding tables. This tax withholding change will be effective in checks dated 2/2/18.
Every employee is strongly encouraged to review their biweekly tax withholdings to ensure the new biweekly amount is appropriate. The IRS is revising the withholding tax calculator on IRS.gov, which is anticipated to be available by the end of February. In the meantime, individuals should consult with their personal tax advisors and/or utilize other reputable online tools to assist in determining their income tax liability for 2018. Employees may make any necessary withholding adjustments directly in Core-CT utilizing self-service, or by submitting a 2017 Form W-4 to Payroll. Additional communication will be forthcoming once the 2018 Form W-4 has been released.
Please note that employees in the SERS retirement plans will also have a 1.5% retirement catch-up deduction in their check dated 2/2/18, per the 2017 SEBAC Agreement which defined an increase in employee pension deductions. Employees who are impacted by the catch-up deduction received prior notification from Human Resources. There may be some confusion when reviewing net pay, since both the decrease in federal tax withholdings and the increase in pension deductions are occurring in the same paycheck. Information regarding the catch-up deduction codes displayed on paychecks can be found at http://www.payroll.uconn.edu/PY/for_employees/deduction_codes.html.
For more information, contact: Payroll at 860-486-2423