On December 22, 2017, President Trump signed into law the Tax Cuts and Jobs Act of 2017 (TCJA). The TCJA represents the Republican Party's plan for tax reform and is the most significant tax overhaul in more than 30 years. (P.L. 115-97.)

Although the impact of the law on employers is far less than was proposed by the House, the compliance effort will nonetheless be substantial, the implementation window tight and the timing less than ideal given the January 31 deadline for meeting Form W-2 and other 2017 filing deadlines.

As with any substantial legislation, there are areas of uncertainty that will require resolution through IRS regulations and other guidance. We can also expect future technical corrections to address inadvertent errors or unintended consequences. Realistically, the process for analyzing the law and coordinating regulations across various IRS departments could stretch well into next year. In the meantime, businesses will need to identify provisions where clarity is needed, acting prudently in the absence of IRS guidance.

Attached to this Alert you will find an analysis of TCJA's employer provisions with a focus on actions that employers need to take now and areas where IRS guidance will be needed.

A summary chart of employer considerations begins on page 25.

Topics addressed in the attached PDF document include:

— Federal income tax withholding, supplemental wages and backup tax
— Fig. 1: Change in individual income tax rates: 2017 compared to 2018
— Federal tax levies (suspension of personal exemption)
— Bicycle commuting benefits (repeal of payroll tax exclusion)
— Eating facilities and de minimis meals (business deduction rules)
— Employee achievement awards (clarification)
— Equity compensation-stock and RSU (election to defer income tax)
— Entertainment expenses (business deduction rules)
— Family and Medical Leave — paid leave (business tax credit)
— Length-of-service awards for public safety volunteers (IRC Section 457 plans)
— Moving expenses (repeal of payroll tax exclusion)
— Settlements — sexual harassment (business deduction rules)
— Transportation fringe benefits (business deduction rules)
— Wage advances and repayments (individual deduction rules)
— Tax Cuts and Jobs Act: Employer considerations

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