The Internal Revenue Service has announced that interest rates will remain the same for the calendar quarter beginning April 1, 2012. The interest rates are as follows: three percent for overpayments (two percent in the case of a corporation); three percent for underpayments; five percent for large corporate underpayments; and one-half percent for the portion [...]
Payroll, Unemployment Insurance & Social Security
Minnesota updates withholding fact sheet on reciprocity
March 16, 2012 By Leave a Comment
The Minnesota Department of Revenue has updated its personal income tax withholding fact sheet on reciprocity. The fact sheet explains the reciprocity exemption under Minnesota’s agreements with Michigan and North Dakota; personal income tax withholding for Minnesota and an employee’s state of residence; reporting information on the company’s Minnesota withholding tax return; completion of Form [...]
Michigan discusses withholding for pension recipients
March 15, 2012 By Leave a Comment
The Michigan Department of Treasury has provided guidance regarding the personal income withholding tax requirement for pensions. Effective January 1, 2012, the Michigan tax treatment of pension and retirement benefits changed (see CCH PAYROLL MANAGEMENT GUIDE Report Letter No. 2202, dated June 7, 2011). Under state law, pension and retirement benefits include most payments reported [...]
Maine updates subminimum wage for workers with a disability
March 14, 2012 By Leave a Comment
Maine law allowing employers to pay a reduced minimum to any person “physically handicapped by age, or otherwise” who has been issued a special certificate for such employment is revised to update and clarify language and to extend such special wage certificates from one to two years. Ch. 483 (H. 1279; L.D. 1729), signed by [...]
D.C. discusses withholding rules for retirement plan distributions
March 13, 2012 By Leave a Comment
The requirement to withhold District of Columbia personal income taxes from periodic and non lump-sum retirement plan or retirement account payments has been repealed (see CCH PAYROLL MANAGEMENT GUIDE Report Letter Issue No. 1361, dated March 6, 2012). The requirement to withhold is now limited to lump-sum distributions, but not: (1) any portion of a [...]