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What Paycheck Changes Employees Can Expect to See in January

December 20, 2018

With the new tax year comes many paycheck adjustments. Here are some of the compensation changes employees might expect to see starting in January 2019:

Wages:

  • Hourly employees will see a pay change when the minimum wage rate increases, effective January 1
  • Classified staff may see a pay increase when the compensation step rates on pay tables are updated, effective January 1

Benefit Deductions:

  • Employees who changed their health benefit elections during Open Enrollment may see different deduction amounts than in the prior year
  • Employees who hit their retirement savings limit earlier in 2018 will see retirement deductions start up again in January 2019

State and Federal Taxes:

  • Employees who hit their Social Security cap earlier in 2018 will see Social Security deductions start up again in January 2019
  • Many employees will see deductions for the new Paid Family and Medical Leave tax on their paychecks beginning in January – though some employees covered by a collective bargaining agreement that expires in June will see the premium deduction starting in July

Many employees saw a reduction in the amount of federal taxes withheld from their paychecks in 2018 when the IRS updated income-tax withholding tables in response to the Tax Cuts and Jobs Act (TCJA) signed into law in December 2017 – January is a good time for employees to review their federal withholding elections (we recommend using the IRS’s Withholding Calculator) and make any necessary adjustments in Workday