Payroll, Unemployment Insurance & Social Security

OMB provides guidance on executive order on regulations

President Trump’s executive order on federal regulations (commonly known as the “two-for-one” order) continues to generate questions about its effect on tax regulations. IRS officials have said that the IRS is reviewing the executive order. Meanwhile, the Office of Management and Budget (OMB) has released a memorandum about the executive order and opponents have filed […]

District of Columbia amends withholding regulations

The District of Columbia has issued revised withholding regulations. The regulations align with the previously reported change from monthly to quarterly withholding returns. Further, the regulations address the general withholding provisions, payment of withholding tax and annual report of withholding. The section on the withholding returns now states that until notified otherwise by the Deputy […]

Connecticut revises guidance regarding withholding requirements

The Connecticut Department of Revenue Services has revised its employer’s tax guide, Circular CT, to provide guidance for employers who withhold Connecticut personal income tax from their employees’ wages in 2017. Married individuals who are employed and have filed a joint Connecticut personal income tax return are reminded they might have to adjust the amount […]

Arkansas lowers income tax rates

Effective for tax years beginning on and after January 1, 2019, Arkansas has enacted legislation that lowers the personal income tax rates. The rate is lowered to 0.75% (from 0.9%) on the first $4,299 of income for residents, individuals, trusts or estates having net income of $21,000 up to $75,000. The rates for residents, individuals, […]

Congress targets payroll card regulations for repeal

The House and Senate have introduced joint resolutions to repeal the Consumer Financial Protection Bureau (CFPB) final rule on payroll cards (see PAYROLL MANAGEMENT GUIDE Report Letter 1478/2457, dated October 11, 2016). The resolutions are required to repeal regulations under the Congressional Review Act. Note that, the final rule’s definition of prepaid accounts specifically included […]

IRS issues Pub 15-A, Employer’s Supplemental Tax Guide

The IRS has released Pub. 15-A. The publication includes the 2017 formula tables for percentage method withholding, wage bracket percentage method tables, combined federal income tax, employee social security tax, and employee medicare tax withholding tables. Qualified small business payroll credit For tax years beginning after December 31, 2015, a qualified small business may elect […]

Minnesota issues guidance on withholding responsibilities

The Minnesota Department of Revenue has updated guidance explaining the state’s personal income tax withholding and the tax responsibilities of a new employer, household employees, independent contractors and agricultural workers. New employer. The fact sheet discusses registration for required identification numbers; federal requirements for new employees, including verification of work eligibility and Social Security numbers, […]

USCIS reminds employers on new visa regulation

On Jan. 17, 2017, a new rule, “Retention of EB-1, EB-2, and EB-3 Immigrant Workers and Program Improvements Affecting High-Skilled Nonimmigrant Workers” amending Department of Homeland Security regulations went into effect. The regulatory amendments provide for the automatic extension of the validity periods of certain Employment Authorization Documents (Form I-766) for up to 180 days […]

USCIS reminder: new I-9 form must be used

U.S. Citizenship and Immigration Services (USCIS) is reminding employers that as of January 22, 2017, the “11/14/2016 N” version of Form I-9, Employment Eligibility Verification, must be used to verify the identity and work eligibility of every new employee hired after November 6, 1986, or for the reverification of any expiring employment authorization of current […]

Administration doubles down on eliminating regulations

The President’s has issued another executive order on, among other things, the elimination of regulations and issuing new regulations. Unless prohibited by law, whenever an executive department or agency publicly proposes for notice and comment or otherwise promulgates a new regulation, it must identify at least two existing regulations to be repealed. For fiscal year […]