Payroll, Unemployment Insurance & Social Security

New Jersey addresses taxability of signing bonus

The New Jersey Division of Taxation has released its Spring 2017, New Jersey State Tax News publication including information on the gross income (personal) tax treatment of a nonresident athlete’s signing bonus. In response to an enquiry from a nonresident athlete, the Division of Taxation stated that a signing bonus received from a New Jersey […]

Michigan to allow bulk filing of forms

The Michigan Department of Treasury (Treasury) is adding a new e-file method for bulk filing Sales, Use and Withholding (SUW) returns with or without payments. Returns created by tax preparation software in xml format will be uploaded directly to Treasury using Michigan Treasury Online (MTO). The existing bulk e-file Web service method will continue to […]

Arkansas addresses withholding of tax on pay for domestic services

The Arkansas Department of Finance and Administration has issued a legal opinion stating that Arkansas income tax withholding is not required on remuneration paid for domestic services performed by a “sitter” unless the remuneration is $2,500 or more in a year. Generally, the withholding of state income is not required on remuneration paid for domestic […]

Piece-work pay plan that reduced weekly bonus violated FLSA

Reversing summary judgment against claims by two cable and internet installation technicians, the Ninth Circuit held that the employer’s piece-work-based pay plan, which included a bonus designed to decrease in proportion to an increase in the number of overtime (OT) hours worked, violated the Fair Labor Standards Act’s (FLSA) overtime provisions. The appeals court also […]

USCIS tells employers to review some Form I-9s

U.S. Citizen and Immigration Services (USCIS) is advising employers who downloaded Form I-9, Employment Eligibility Verification, between November 14 and November 17, 2016, to review them to ensure the employees’ social security numbers appear correctly in Section 1. There was a glitch when the revised Form I-9 was first published on Nov. 14, 2016. Numbers […]

South Carolina bars subdivisions from mandating benefits

South Carolina Governor Henry McMaster has signed a law that prevents political subdivisions from setting mandates on private businesses to provide employee benefits such as health benefits, disability benefits, death benefits, group accidental death and dismemberment benefits, paid days off for holidays, paid sick leave, paid vacation leave, paid personal necessity leave, retirement benefits, and […]

Puerto Rico labor and flexibility law provisions summarized

Puerto Rico recently enacted the Labor Transformation and Flexibility Act, on January 26, 2017 (see Payroll Management Guide Report Letter 1488/2495, dated February 28, 2017). The law contains numerous changes on employment contracts, exclusions, independent contractors, employee rights, contract termination, statute of limitations, overtime, vacation and sick leave, gross income, and unemployment insurance (flexicurity). Employment […]

Illinois eliminates annual withholding for most employers

The Illinois Department of Revenue has amended regulations to eliminate annual personal income tax withholding returns and payments for most employers. Taxpayers who employ domestic employees may continue to report and pay withholding tax on an annual basis. Effective before January 1, 2017, employers in good standing who reported $1,000 or less in withholding during […]

Arizona issues alert for Form W-2 email phishing scam

The Arizona Department of Revenue has issued a news release warning employers about a Form W-2 email phishing scam that attempts to steal employee W-2 information from company payroll or human resources departments. Cybercriminals may send an email to a payroll office or human resource employee requesting employee W-2 data and, in some cases, payroll […]

Employer may violate minimum wage if tip credit is applied

Although an employee did not allege that she failed to receive the minimum wage when including all the tips she received as a server, that deficiency did not preclude her from stating a claim for a minimum wage violation, ruled the Tenth Circuit. The appeals court rejected a district court’s conclusion that “if [a] tipped […]