It’s hard to believe that we’re already more than halfway through 2017. Calendar year 2017 began with high anticipation of a historic year of tax reform and changes. It is now July and there has been very little change, as of the time of this writing.
Here’s what we do know:
The original Affordable Care Act (ACA) has been repealed in the House only, without a concrete replacement. So as of this time, nothing changes — the ACA is still here, and 1094s and 1095s all stay in place. Another unknown factor is what’s happening with 2015 and 2016 incorrect, incomplete and missing submissions. Time will tell, as the IRS has been quiet on this subject.
The much hailed “tax reform” and the reduction of brackets and simplification have not been announced, so we continue to be in a holding pattern at this time. Also, many states rely on the federal government for finalizing their tax reform, so most states have not announced any changes at this point.
We also know a few things from the original “short version” of the President Trump budget proposal.
- Paid Family Leave — The budget calls for six weeks of paid family leave for new mothers and fathers, including adoptive parents, to recover from childbirth and bond with a new child. States would be required to establish a paid parental leave program using the Unemployment Insurance (UI) system as a base. The paid leave program would be supported by unemployment reforms that reduce improper payments, help unemployed workers find jobs more quickly and encourage states to maintain reserves in their unemployment trust fund accounts.
- Child Support Enforcement Program — The budget calls for the establishment of a Child Support Technology Fund to aid state agencies in replacing aging computer systems to improve security and efficiency. The budget also calls for a number of unspecified enforcement proposals.
- American Health Care Act — The budget affirms President Trump’s support of the American Health Care Act to replace the Affordable Care Act. Employer mandates would be eliminated, as well as the higher Medicare tax rate for high wage earners, beginning in 2023. Health savings account (HSA) options would be expanded.
- Truncated SSN on W-2 Forms — The IRS remains quiet on this for W-2s — in fact, the IRS has reiterated that the full social security number is required on all employee W-2s for 2017. There may be some guidance down the road, but probably not this year. By the way, 1099s can already be masked. You can also look into the Protecting Americans from Tax Hikes Act of 2015 (PATH Act) for more information.
- Mandatory E-Verify — The budget proposes to make E-Verify participation mandatory nationwide. Currently only employers in certain states and federal contractors are required to utilize the program — the budget would expand this to all employers and be fully implemented within three years. This requirement would require congressional approval.
- Other — The budget reiterates the Trump administration’s support for reducing federal regulations. The President supports simplifying the tax code including lowering individual income tax rates and expanding the standard deduction.
Stay tuned as the rest of 2017 unfolds — it could still be an interesting year! And you can always count on myPay Solutions to keep an eye on the latest breaking news.