New Mexico issues 2018 withholding tables

New Mexico has released new withholding tables for wages paid on and after January 1, 2018. The supplemental wage rate will remain 4.9%. The annual exemption value will remain $4,050. In addition, all of the tables will be reproduced in the Payroll Management Guide at ¶7388 and ¶7389 in a future release. (New Mexico Taxation […]

IRS issues 2018 Tier 2 railroad retirement tax rates

The IRS has released the tier 2 Railroad Retirement Tax Act (RRTA) tax rates for 2018 for railroad employees, employers and employee representatives, respectively. For 2018, the tier 2 tax rate on employees is 4.9 percent of compensation and the tier 2 tax rate on employers and employee representatives is 13.1 percent of compensation. (Publication […]

SSA changes 2018 wage base to $128,400

In October of each year, the Social Security Administration announces adjustments that take effect the following January that are based on the increase in average wages. Based on the wage data Social Security had at the time of the October 13, 2017, announcement, the maximum amount of earnings subject to the social security tax (taxable […]

N.Y. State, City, and Yonkers 2018 withholding tables issued

New York state has issued withholding tables for itself, New York City, and Yonkers, for wages paid on and after January 1, 2018. All of the tables will be reproduced in the Payroll Management Guide beginning at 7518, 7548, and 7558, respectively in a future release. The New York State supplemental wage rate will remain […]

Minnesota issues 2018 withholding tables

Minnesota has issued the 2018 wage-bracket and computer formula withholding tables. All of the tables will be reproduced in the Payroll Management Guide at 6778 and 6779 in a future release. The annual exemption amount will be $4,150. (2018 Minnesota Withholding Tax Tables; November 2017; http://www.revenue.state.mn.us/businesses/withholding/Pages/Forms.aspx.) Visit our News Library to read more news stories.

Both Senate and House tax bills include payroll items

As we go to press, the Senate version of the tax reform bill was being debated by the full Senate. Meanwhile the House passed its version of the Tax Cuts and Jobs Act, H.R 1, on November 16, 2017. The payroll provisions of each are highlighted below. Tax rate decreases House version. The current seven […]

Missouri’s minimum wage will increase to $7.85 on Jan. 1

The minimum wage in Missouri will increase from $7.70 per hour to $7.85 per hour on January 1, 2018. Employers engaged in retail or service businesses whose annual gross income is less than $500,000 are not subject to pay the state minimum wage. Employers not subject to the minimum wage law can pay employees wages […]

CT updates guidance on electronic filing of Form W-2 for tax year 2017

The Connecticut Department of Revenue Services (DRS) has updated an informational publication, for corporate and personal income tax purposes, that contains information on the following for tax year 2017: Specifications and instructions for electronic filing of Form W-2 (Wage and Tax Statements); Third-party bulk filers; Correction of an electronic submission; and Treatment of third-party sick […]

CT issues guidance on electronic filing of 1099-R, 1099-MISC, and W-2G

The Connecticut Department of Revenue Services (DRS) has updated an informational publication, for corporate and personal income tax purposes, that contains specifications and instructions for electronic filing of Forms 1099-R, 1099-MISC, and W-2G for the 2017 tax year, including information on: Third party bulk filers; The correction of an electronic submission; and Supplemental returns. When […]

Form W-2 filing penalties on the rise

Over the past couple of filing seasons, employers have seen sharp increases in the penalties for failure to properly file information returns and provide payee statements-including those all-important Forms W-2, Wage and Tax Statements, for employees [I.R.C. §6721 and §6722, as amended by the Trade Preference Extension Act of 2015, Pub. Law No. 114-27 (6/29/2015)]. […]