Payroll, Unemployment Insurance & Social Security

Retirees urged to use withholding calculator to avoid penalty

The IRS has urged retirees to perform a “paycheck checkup” using the Withholding Calculator to verify that they were having the right amount of tax withheld from their pensions and annuity checks. This guidance is part of the “Paycheck Checkup” campaign aimed at encouraging taxpayers to promptly check their tax situation. Taxpayers have at their […]

Taxpayers urged to avoid penalty for tax underpayment

The IRS advised taxpayers to plan ahead and understand their options in order to avoid a penalty for underpayment of tax when they file early in 2019. The guidance is part of the Service’s broader “Paycheck Checkup” campaign to encourage taxpayers to check their tax situation, including withholding and estimated tax payments. Taxpayers can make […]

IRS adjusts Pub. 1494 levy amounts for head of households

The IRS has adjusted the amounts exempt from levy for head of households contained in IRS Pub 1494. The amount for daily with three exemptions is now $171.11. The amounts for weekly with 2, 3, 4, and 5 exemptions are: $505.77, $585.58, $665.39, and $745.20, respectively. In addition, for married filing jointly, daily, with 2 […]

Interest rates remain the same in the fourth quarter of 2018

The IRS has announced that interest rates will remain the same for the calendar quarter beginning October 1, 2018. The interest rates will be 5% for overpayments (4% in the case of a corporation) and underpayments, 7% for large corporate underpayments and 2.5% for the portion of a corporate overpayment exceeding $10,000. The interest rates […]

San Francisco, California payroll expense rate will be 0.38% for 2018

San Francisco, California payroll expense rate will be 0.38% for 2018. The exemption for small business will be $300,000. (San Francisco, California, Office of the Controller Memorandum, August 30, 2018.) Visit our News Library to read more news stories.

Ohio issues guidance on changes to residency guidelines

The Ohio Department of Taxation updated its residency guidance pertaining to the tax imposed on resident and nonresident individuals for taxable years beginning on or after January 1, 2018. The release covers who is subject to Ohio personal income tax and who is a resident, contact period test and provides guidance for the irrebuttable presumption […]

Colorado requests comments on proposed minimum wage order

Colorado is requesting comments on proposed changes to upcoming minimum wage Minimum Wage Order No. 35. Send comments by close of business Monday, September 17th. Stakeholders will have an additional opportunity to provide written comments during the formal rulemaking process, as well as at the rulemaking public hearing on Tuesday, November 6, 2018 at 1:00 […]

TIGTA: Use Fed/State program better to improve compliance

The IRS could be more effective in addressing noncompliance by better using and controlling the Fed/State Program, according to a report by the Treasury Inspector General for Tax Administration (TIGTA). In the Fed/State program, the IRS Governmental Liaison function facilitates and expands joint tax administration relationships between the IRS and state taxation authorities, such as […]

IRS updates procedures on liability/information return penalty

The IRS has updated its liability and information return penalty (IRP) procedures. This IRM addresses the instructions in the Small Business/Self-Employed (SB/SE) IRP program in the IRP process. Generally, the IRP function assesses IRPs in the 500-514 Penalty Reference Number (PRN) series, including penalties for prior-year returns. First Time Abate (FTA) administrative waiver procedures do […]

Minnesota’s minimum wage will increase January 1

Minnesota’s minimum-wage rates will be adjusted for inflation beginning January 1, 2019, to $9.86 an hour for large employers and $8.04 an hour for other state minimum wages. The current large-employer minimum wage, $9.65, will increase by 21 cents to $9.86. Other state minimum wages, including the small-employer, youth and training wages, as well as […]