As the result of the Tax Cut and Jobs Act (TCJA) approved by Congress in December 2017, there are several tax changes for 2018 that affect members of the UVA community (including the UVA Health System and College at Wise) and may require you to take action. Please read the important information below to determine where you may need to make changes to your 2018 tax withholding or Heath Savings Account (HSA) contributions. These changes will not impact your 2017 tax filings.
 
For additional information about TCJA change implementation, visit the IRS tax reform webpage .

1. Payroll Deductions for UVA Parking Permits

Who’s Affected: Any UVA faculty, staff, and team members who use payroll deduction to pay for UVA parking permits on a pre-tax basis.
 
What’s Happening: Due to changes in the tax law, parking will no longer be a pre-tax benefit. As a result, those who pay for UVA parking permits through payroll deduction will see a decrease (approximately $3 to $20 per pay period) in net pay going forward.
 
When: UVA will begin to deduct parking expenses on an after-tax basis with the following paychecks, based on your work location and pay cycle:
  • Academic Division and Wise monthly pay: March 30
  • Health System biweekly pay: March 30
  • Academic Division and Wise biweekly pay: April 6

Why: The TCJA eliminated the ability of nonprofits, such as UVA, to provide certain benefits, such as parking, on a tax-free basis.

2. Employment-related Moving Expenses

Who’s Affected: Any UVA faculty, staff, and team members who are reimbursed for employment-related moving costs on or after January 1, 2018.
 
What’s Happening: Due to changes in the tax law, employee reimbursements for moving expenses related to work-related housing moves will now be taxable, beginning January 1, 2018. As a result, all expenses either paid directly by UVA or reimbursed to employees for work-related housing moves are taxable beginning January 1, 2018. Moving expense benefits received by employees will be included as additional wage income on employee W-2s and will be subject to FICA withholding.
 
When: This change was implemented on January 1, 2018.
 
Why: The TCJA eliminated the tax deduction previously available for employer-provided moving expenses for all U.S. employees.

3. IRS Releases New Withholding Calculator

Who’s Affected: All UVA faculty, staff, and team members.
 
What’s Happening: The TCJA substantially changed personal income tax brackets, beginning January 1, 2018. Many taxpayers will need to adjust their claimed exemptions on the W-4 so that the appropriate amount of tax is withheld in light of the new tax rates.
 
What to Do: To ensure that you avoid significant over- or under-withholdings in 2018, you may use the IRS Withholding Calculator to assess your withholdings. If you determine a need to change withholdings on your W-4, Academic Division and Wise faculty and staff may use the instructions here . Health System team members may access updating W-4 instructions here .
 
When: This change was implemented on January 1, 2018.
 
Why: The TCJA substantially revised personal income tax brackets.

4. HSA Limit - Family Health Savings Account (HSA) Max Decreased

Who’s Affected: Any UVA faculty, staff, and team members who are enrolled in UVA’s Basic Health plan, have a family Health Savings Account, and plan to contribute to the annual maximum.
 
What’s Happening: The IRS has reduced the HSA maximum annual contribution limit for family accounts by $50 to $6,850 as opposed to the previously published amount of $6,900.
 
What to Do: If you have a family HSA in 2018 and have elected to reach the maximum contribution, you will want to make an election change to remain at or under the updated maximum this year in order to avoid negative tax implications. Remember that the UVA/UVA Health System employer contribution to the HSA is included toward the maximum annual contribution.

Academic Division and Wise faculty and staff may change their elections by contacting the HR Solution Center at AskHR@virginia.edu or 434-243-3344.

Health System team members may complete the HSA Program Employee Contribution Change Form and submit it to the Solution Center as directed on the form.
 
When: This change has already been implemented for 2018.
 
Why: In early March, the IRS released revised cost-of-living adjustments impacting HSA contributions in 2018, resulting in the $50 reduction.
 
Questions? If you have questions, please contact the following:
  • For Academic Division and Wise Employees: The HR Solutions Center at 434-243-3344 or AskHR@virginia.edu
  • For UVA Health System Employees: Jon VanFossen at 434-924-1151 or jmv9c@virginia.edu