2018 Tax Withholding
Social Security Tax
The Social Security withholding tax rate is 6.2%. The wage limit on which Social Security tax is calculated is $128,400.
The Medicare withholding is 1.45% up to $200,000 and 2.35% for wages received in excess of $200,000.
Federal Income Tax Withholding
Federal tax withholding tables will be changing for 2018 based on the Tax Cuts and Jobs Act which was signed into law on December 22, 2017. Please refer to the tax reform affects UI employee paychecks starting February 2018 for the most up-to-date information..
State of Iowa Income Tax Withholding
The State of Iowa income tax withholding tables will not change for 2018. However, you may see an adjustment in Iowa income tax withholding on future paychecks as Iowa income tax withholding tables include federal withholding in the calculation of Iowa tax withholding. Depending upon how your federal income withholding may change on future paychecks, it may effect your Iowa income tax withholding.
State of Illinois Income Tax Withholding
Effective July 1, 2017, the Illinois Department of Revenue has increased their state withholding tax rate from 3.75% to 4.95%. For more information, refer to Illinois Tax Bulletin FY2018-02.