Tax Cuts and Jobs Act FAQs (Frequently Asked Questions)

How are payroll taxes calculated?

The IRS and state tax agencies publish annual tables to determine the amount of tax to be withheld from each paycheck, depending on the employee’s gross wages, filing status (married or single), number of withholding allowances (exemptions) and pay frequency. The Tax Cuts and Jobs Act reduces the tax rate for taxable income as outlined in its tables.

 What can TCU employees expect from this federal tax change?

  • Bi-weekly paid TCU employees may see an increase in their paychecks beginning Feb. 16 due to a reduction in federal tax withholdings; monthly paid TCU employees may see a similar increase beginning Feb. 28.
  • TCU’s paycheck modeler, a tool to calculate a hypothetical paycheck by changing your earnings, deductions or tax withholding status, is being updated to coincide with the Feb. 16/28 payroll dates. Visit tcu.edu, select the Payroll icon and paycheck modeler to access.

How do I know if I am withholding enough for federal taxes?

  • The IRS allows a number of exemptions (withholding allowances), including one exemption for yourself, one for your spouse and one for each dependent child you report—the number of exemptions claimed on your W-4 form directly impacts the amount of tax withheld from your pay. In the coming weeks, the IRS is expected to release a revised W-4 form to reflect changes under the TCJA.
  • We encourage you to contact a tax account or financial planner to discuss ways in which you can reduce your taxable income and ensure proper withholdings.

What if I want to change my withholdings for 2018?

In the coming weeks, the IRS is expected to release a revised W-4 form to reflect changes under the TCJA. Until the new form is released, employees may consider maintaining their current withholdings while awaiting further information from the IRS.

  • If a change is necessary, go to tcu.edu, click the Payroll icon, complete the W-4 Tax Information form and click Submit.

Who do I call if I have questions?

The Human Resources Payroll Office is available to answer questions about TCU’s payroll processes and may be reached at hrpayroll@tcu.edu. TCU Human Resources employees are neither certified tax accountants nor financial planners and, as such, are unable to provide tax advice.

  • For questions related to the Tax Cuts and Jobs Act, please visit the IRS website.
  • Contact a qualified tax account or financial planner to discuss your withholdings and ways in which you can reduce your taxable income and ensure proper withholdings.