IRS issues Pub 15 plus W-4 withholding guidance

The IRS has released IRS Pub 15 and other guidance on withholding for 2018. The guidance: extends the effective period of Forms W-4, Employee’s Withholding Allowance Certificate, furnished to claim exemption from income tax withholding under section 3402(n) of the Internal Revenue Code (Code) for 2017 until February 28, 2018, and permits employees to claim […]

Pennsylvania Governor directs overhaul of state overtime rules

Pennsylvania Governor Tom Wolf has announced a proposal that is intended to strengthen the middle class by modernizing the state’s outdated overtime rules, a move expected to increase the pay of nearly half a million people. Because the overtime rules have not been updated, employees in the state are covered by an exemption to overtime […]

Illinois discusses W-2 electronic filing, storage requirements

The Illinois Department of Revenue published an informational bulletin on the electronic filing requirements for withholding income tax purposes. Starting with the 2017 tax year, employers and taxpayers are required to electronically file federal Forms W-2, Wage and Tax Statement; W-2c, Corrected Wage and Tax Statement; and W-2G, Certain Gambling Winnings. Further, starting with the […]

Petition for review filed in RRTA taxes case

A petition for review was filed in a case in which a rail carrier was entitled to a refund of railroad retirement taxes that it paid on company stock it used to compensate employees. The Railroad Retirement Tax Act (RRTA) does not require the tax to be paid on stock compensation. The government argued that […]

2017 EEO-1 survey filing period is open, deadline is March 31

The 2017 Employer Information Report EEO-1, commonly known as the EEO-1 Report, is now open and the filing deadline is March 31, 2018. Federal regulations require that all employers in the private sector with 100 or more employees, and federal contractors and subcontractors with 50 or more employees and a federal contract or subcontract amounting […]

Oregon has issued the 2018 withholding formulas

Oregon has issued the 2018 computer formula withholding tables for wages paid on and after February 1, 2018. All of the tables will be reproduced in the Payroll Management Guide in a future release at ¶8048 and ¶8049. The supplemental wage rate remains 9%. The publication is available at Employers may not modify the […]

North Carolina issues Form NC-3 and FAQs

North Carolina reminds employers, pension payers, and others that withhold personal income tax they must electronically file an annual reconciliation of withholding, Form NC-3, by January 31, 2018. Copies of W-2s, 1099s and other withholding statements must also be filed electronically by the deadline. The Department of Revenue is granting an automatic waiver from the […]

Massachusetts issues substitute form specs

Massachusetts has issued a handbook on the reproduction of substitute forms. The publication outlines the procedures for submitting substitute forms for approval. In addition, it sets out the Department of Revenue’s requirements for acceptable reproduced copies of tax returns and supporting schedules for filing. Also, it discusses which forms may be reproduced by computerized tax […]

Maryland lawmakers override governor’s sick and safe leave veto

On January 12, the Maryland Assembly overrode Governor Larry Hogan’s May 25, 2017, veto of a bill that requires employers with 15 or more employees to provide earned sick and safe leave paid at the same wage rate as the employee normally earns. Under H.B. 1, employers with 14 or fewer employees will be required […]

IRS, states, and tax industry warn employers of Form W-2 scam

The IRS, state tax agencies and the tax industry are urging all employers to educate their payroll personnel about a Form W-2 phishing scam that made victims of hundreds of organizations and thousands of employees last year. The Form W-2 scam has emerged as one of the most dangerous phishing emails in the tax community. […]