Payroll, Unemployment Insurance & Social Security

California’s minimum wage to increase to $11 and $10.50 per hour

California’s minimum wage will increase on January 1, 2018, to $11 per hour for employers with 26 employees or more and $10.50 for employers with 25 or fewer employees. Currently, the state minimum wage is $10.50 per hour for employers with 26 or more employees and $10 per hour for employers with 25 or fewer […]

DOL intends to rescind 2011 tip-pooling rule

The Department of Labor (DOL) intends to rescind a 2011 regulation that prohibited restaurants and other service-industry employers from requiring tipped employees to share their tips with non-tipped coworkers, even when the employer does not take a tip credit to satisfy a portion of the federal minimum wage and instead pays its tipped employees the […]

Interest rates remain the same for the first quarter of 2018

The IRS has announced that interest rates will remain the same for the calendar quarter beginning January 1, 2018. 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 […]

IRS warns taxpayers about W-2 e-mail scams

The IRS has issued its fourth reminder for “National Tax Security Awareness Week” urging taxpayers to avoid identity theft by watching out for W-2 e-mail scams that often surge during filing season. The W-2 scam has emerged as one of the most dangerous and successful phishing attacks as hundreds of employers and tens of thousands […]

New Mexico issues 2018 withholding tables

New Mexico has released new withholding tables for wages paid on and after January 1, 2018. The supplemental wage rate will remain 4.9%. The annual exemption value will remain $4,050. In addition, all of the tables will be reproduced in the Payroll Management Guide at ¶7388 and ¶7389 in a future release. (New Mexico Taxation […]

IRS issues 2018 Tier 2 railroad retirement tax rates

The IRS has released the tier 2 Railroad Retirement Tax Act (RRTA) tax rates for 2018 for railroad employees, employers and employee representatives, respectively. For 2018, the tier 2 tax rate on employees is 4.9 percent of compensation and the tier 2 tax rate on employers and employee representatives is 13.1 percent of compensation. (Publication […]

SSA changes 2018 wage base to $128,400

In October of each year, the Social Security Administration announces adjustments that take effect the following January that are based on the increase in average wages. Based on the wage data Social Security had at the time of the October 13, 2017, announcement, the maximum amount of earnings subject to the social security tax (taxable […]

N.Y. State, City, and Yonkers 2018 withholding tables issued

New York state has issued withholding tables for itself, New York City, and Yonkers, for wages paid on and after January 1, 2018. All of the tables will be reproduced in the Payroll Management Guide beginning at 7518, 7548, and 7558, respectively in a future release. The New York State supplemental wage rate will remain […]

Minnesota issues 2018 withholding tables

Minnesota has issued the 2018 wage-bracket and computer formula withholding tables. All of the tables will be reproduced in the Payroll Management Guide at 6778 and 6779 in a future release. The annual exemption amount will be $4,150. (2018 Minnesota Withholding Tax Tables; November 2017; http://www.revenue.state.mn.us/businesses/withholding/Pages/Forms.aspx.) Visit our News Library to read more news stories.

Both Senate and House tax bills include payroll items

As we go to press, the Senate version of the tax reform bill was being debated by the full Senate. Meanwhile the House passed its version of the Tax Cuts and Jobs Act, H.R 1, on November 16, 2017. The payroll provisions of each are highlighted below. Tax rate decreases House version. The current seven […]