Paychex updates HCM platform to reflect new withholding rates
HR technology provider Paychex updated the payroll portion of its human capital management platform, Paychex Flex, to reflect the IRS’ newly updated tax withholding tables for 2018 under the Tax Cuts and Jobs Act.
The IRS update was made to Paychex Flex, the company’s HCM platform that provides online payroll operations with tax withholding functionality. The web-based offering can scale from small business to large enterprises.
PaychexThe IRS released the new guidelines on the afternoon of Jan. 11 and the Rochester, NY-based Paychex claims it released its platform update for start of business on the next day.
“The updated tables are now here and for Paychex Flex clients submitting payroll today, those payrolls will be processed using the new withholdings,” says Martin Mucci, president and CEO of Paychex.
The newly released guidance, entitled “IRS Notice 1036,” reflect the changes in the tax law that President Donald Trump signed into law in December. For example, the new tax guidelines instruct employers how to lawfully withhold wages from employee paychecks in 2018. The updated tables also include new information pertaining to the increase in the standard deduction, repeal of personal exemptions, and changes in tax rates and brackets.
“We were able to implement the revised withholding tax tables and make them ready to go Friday morning. So, any employers who use our service could issue paychecks that reflected the new tax rate from the new tax tables,” says Mike Trabold, director of compliance for Paychex.
This was automatic update for clients, according to Trabold. “We weren’t sure how the IRS would make the change, but it was similar to how they would send out a withholding table change. It was basically a computer table that we got, we sent it to our IT folks and they basically refreshed the table in the platform with the new information.” he says.
The IRS update was made to Paychex Flex, the company’s human capital management platform that provides online payroll operations with tax withholding functionality. The web-based offering can scale from small business to large enterprises.