Publication Explains Employer Tax Responsibilities

The Internal Revenue Service (IRS) has released Publication 15 (Circular E), Employer's Tax Guide, for use in 2018. This publication:

  • Details employers' federal tax responsibilities;
  • Explains the federal requirements for withholding, depositing, reporting, paying, and correcting employment taxes;
  • Lists the forms employers must give to their employees, those that employees must give to the employer, and those that the employer must send to the IRS and Social Security Administration; and
  • Features the tax tables to figure the taxes to withhold from each employee.

Publication Highlights
Highlights of the 2018 publication include the following:

  • Social Security and Medicare Tax for 2018. The Social Security tax rate is 6.2% each for the employee and employer, unchanged from 2017. The Social Security wage base limit is $128,400. The Medicare tax rate is 1.45% each for the employee and employer, unchanged from 2017. There is no wage base limit for the Medicare tax.
  • 2018 Withholding Tables. The publication includes the 2018 Percentage Method Tables and Wage Bracket Tables for Income Tax Withholding.
  • Withholding Allowance. The 2018 amount for one withholding allowance on an annual basis is $4,150.

Click here to access the 2018 IRS Publication 15.

For additional tax information, please visit our section on Employer Tax Laws.