Minnesota issues substitute form specifications

Minnesota has issued substitute form specifications. The Minnesota Department of Revenue requires software providers to yearly sign and submit Letter of Intent agreements for approval. The Department will accept reproduced tax forms that match the official Department forms. Users must register and submit all reproduced forms for approval prior to distribution. This includes tax returns, […]

Pre-shift wait time not compensation under Portal Act

The Portal-to-Portal Act (PPA) precluded the pre-shift wait time of three employees working on an oil refinery expansion project from being compensable under the FLSA, ruled the Fifth Circuit. The court observed that the waiting itself was neither tied to nor necessary to the erection and dismantling of scaffolding-the work the employees were employed to […]

2018 pension limitations not affected by Tax Cut and Jobs Act

The Internal Revenue Service has announced that the Tax Cut and Jobs Act of 2017 does not affect the tax year 2018 dollar limitations for retirement plans announced in IR 2017-177 and detailed in Notice 2017-64. The tax law provides dollar limitations on benefits and contributions under qualified retirement plans, and it requires the Treasury […]

Puerto Rico issues withholding certificates for 2018

Section 1062.03 of the 2011 PR IRC establishes the general obligation of all persons, whether individuals or entities, that in the performance of a trade or business or income-producing activity in Puerto Rico makes payments to another person for services rendered, to deduct and withhold 7% from said payments for the income tax. The Secretary […]

Illinois updates information on withholding payment

The Illinois Department of Revenue has updated its informational publication that provides guidance on personal income withholding tax payment. Technical changes have been made to the publication to clarify the withholding requirements for a seasonal employer and to provide instructions on how to complete Forms W-2 and 1099. The publication covers: Who is an employer; […]

IRS updates electronic filing specifications for ACA forms

The IRS has issued the electronic filing specifications for ACA forms. Publication 5165, Guide for Electronically Filing Affordable Care Act (ACA) Information Returns (AIR) for Software Developers and Transmitters (Processing Year [PY] 2018), outlines the communication procedures, transmission formats, business rules and validation procedures for information returns transmitted electronically through the AIR System. To develop […]

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 […]