Payroll, Unemployment Insurance & Social Security

House passes mobile workforce tax simplification

The U.S. House of Representatives passed the Mobile Workforce State Income Tax Simplification Act of 2017, H.R. 1393, which would limit the authority of states to tax wages and other remuneration from employment in other states. If enacted, no part of the wages or other remuneration earned by an employee who performs employment duties in […]

Senate releases draft health care reform bill

The Senate has released a draft of the Better Care Reconciliation Act of 2017, H.R. 1628 with some payroll-related items. It will only require 51 votes to pass. The payroll-related provisions include: Repeal of tax on employee health insurance premiums and health plans The excise tax on high cost employer-sponsored health coverage will not apply […]

Kansas legislature overrides veto, enacts income tax rate increase

The Kansas Legislature has overridden Gov. Sam Brownback’s veto of a bill that makes a number of changes to personal income taxes, including repealing the exemption for non-wage business income and increasing personal income tax rates. Personal income tax rates. Under the legislation, personal income tax rates would be increased beginning in tax year 2017 […]

Interest rates remain the same for the third quarter of 2017

The IRS has announced that interest rates will remain the same for the calendar quarter beginning July 1, 2017. The interest rates will remain at 4% for overpayments (3% in the case of a corporation) and underpayments, 6% for large corporate underpayments and 1.5% for the portion of a corporate overpayment exceeding $10,000. The interest […]

Court strikes PTIN fees; IRS suspends registration, renewal

A federal district court has found that the IRS may require the use of preparer tax identification numbers (PTINs). However, the court enjoined the IRS from charging a user fee to issue or renew PTINs. The IRS announced that, as a result of the court’s decision, PTIN registration and renewal is suspended. The D.C. Circuit, […]

Information request on OT rule is in the works

On June 7, Labor Secretary Alexander Acosta told a House Appropriations subcommittee that the Labor Department (DOL) expects to submit a request for information comment on the controversial updated overtime rule. As Acosta explained in simplified terms earlier in the hearing on the proposed DOL budget, an information request is required under the Administrative Procedure […]

New York issues new withholding tables for New York City

New York has issued new withholding tables for New York City due to changes in the income tax rate. The amendments eliminate the personal income tax rate reduction relating to the STAR Program for New York City taxpayers with city taxable income of $500,000 or less, offset by an expansion of the existing New York […]

Ohio court overturns state control of labor and fringe benefits

An Ohio court has overturned the state’s law provision that prevents localities from enacting their own labor and fringe benefits ordinances. According to the Court, the provision violated the one-subject rule of the Ohio Constitution. The rest of the law was about animals. Here is the repealed statute provision: SECTION 5. Section 4113.85 of the […]

Michigan discusses reciprocal agreements

The Michigan Department of Treasury has issued a revenue administrative bulletin describing the relevance of reciprocal agreements to Parts 1 and 3 of the Michigan Income Tax Act and nonresident taxpayers. The bulletin addresses the effect of reciprocal agreements between Michigan and other states on income tax liability and withholding requirements. A Michigan resident will […]

California EDD has payroll advice for cannabis businesses

California has issued some payroll advice for those who have employees in the cannabis business. The Medical Marijuana Regulation and Safety Act became law January 1, 2016, and the Adult Use of Marijuana Act, Proposition 64, was approved by California voters November 8, 2016. It is now legal for individuals to grow and use marijuana […]