Payroll, Unemployment Insurance & Social Security

Illinois flood-related deadline relief extended

Illinois Gov. Bruce Rauner has announced that the state will waive penalties and interest for taxpayers in an additional eight counties who cannot file or pay taxes on time as a result of floods in July 2017. The additional counties are Carroll, Henry, Jo Daviess, Lee, Ogle, Rock Island, Stephenson, and Whiteside. Previously declared disaster […]

Wisconsin issues bulletin on military pay, withholding

The Wisconsin Department of Revenue has issued a tax bulletin that discusses military pay and nonresident withholding. Military pay income subtractions—The military pay income subtraction does not apply to pay that members of the Reserves and National Guard receive for weekend or two-week annual training and it also does not apply to a member of […]

Michigan program allows authorized businesses to retain withholding

Depending upon the number of jobs created and the wage level of the jobs, a company will be issued a withholding certificate covering the cost of either 50% or 100% of the income tax withheld attributable to the newly hired employees. An eligible business can receive one of three amounts: if the business creates a […]

TIGTA: Potential underreported tax not being addressed

The Treasury Inspector General for Tax Administration (TIGTA) found that billions of dollars of potential underreported taxes were not being addressed by the Combined Annual Wage Reporting (CAWR) Program because most discrepancy cases were not being worked. TIGTA initiated the audit to evaluate whether the IRS-CAWR Program’s document-matching process accurately identified and selected the most […]

Maine issues new withholding tables; implement immediately

Maine has issued new wage-bracket and percentage method withholding tables to be implemented immediately. The tables have been updated to reflect the recent repeal of the income tax surcharge on individuals with income greater than $200,000. While the 2017 Maine personal exemption amount ($4,050) is the same as the federal exemption amount, the Maine basic […]

DC deduction, exemptions, credit and rates updated

The District of Columbia recently enacted the Fiscal Year 2018 Budget Support Emergency Act of 2017. This legislation enacts, on an emergency basis, changes to the standard deduction, personal exemption, low income credit, and personal and corporate income tax rates. However, most of the changes have been previously announced by the District’s Chief Financial Officer […]

Delaware updates personal income tax: W-2 and 1099 FAQs

The Delaware Division of Revenue has updated its answers to frequently asked questions (FAQs) regarding W-2 and 1099 personal income tax withholding information for the 2018 reporting period. The FAQs note that Delaware due dates for W-2 and 1099 submissions have been changed to be consistent with federal due dates. The revised due date for […]

District Court had jurisdiction over FICA refund claims

A federal district court had jurisdiction over various individuals FICA refund claims. The basis of the individuals’ refund claims was Puerto Rico Law 80, which provides that severance pay is not subject to payroll taxes. However, federal law required their employer to withhold payroll taxes from their severance pay. Therefore, if the individuals believed that […]

DOL’s prohibition on employers retaining tips is invalid

The Department of Labor (DOL) exceeded its authority when it implemented a regulation categorically prohibiting employers from retaining tips regardless of whether they avail themselves of the tip credit, the Tenth Circuit held. The underlying suit was brought by a catering employee whose employer pocketed the gratuities added by customers when paying the final bill […]

EBSA removes state payroll deduction IRA regulations

Under the Congressional Review Act, Congress has passed, and the President has signed, resolutions of disapproval of Savings Arrangements Established by States for Non-Governmental Employees and Savings Arrangements Established by Qualified State Political Subdivisions for Non-Governmental Employees, as codified in the Code of Federal Regulations. The Employee Benefits Security Administration (EBSA) published these final rules […]