Minnesota discusses submission of W-2s and 1099s using e-Services

For corporate and personal income tax purposes, the Minnesota Department of Revenue has issued a release reminding taxpayers that beginning January 1, 2019, taxpayers will no longer be able to use the department’s Electronic Data Exchange system to submit W-2 and 1099 files. The Department has made enhancements to its e-Services system, and taxpayers may […]

California EDD grants filing relief for victims of fires

Employers in Orange and Riverside Counties directly affected by the Holy fire, may request up to a 60-day extension of time from the EDD to file their state payroll reports and/or deposit state payroll taxes without penalty or interest. This extension may be granted under Section 1111.5 of the California Unemployment Insurance Code (CUIC). A […]

Professionals must protect EFINs, PTINs and CAF numbers

The IRS is urging tax professionals to maintain and protect EFINs, and to monitor EFINs, PTINs and CAF numbers. The IRS and the Security Summit partners warned tax professionals that savvy cybercriminals target IRS-issued identification numbers to help impersonate practitioners as well as taxpayers. To help protect against this threat used on the Dark Web, […]

IRS issues 2019 draft of Form W-2

The IRS has released a draft of the 2019 Form W-2. The form has Box 9 which was included in the 2018 form. The instructions state: Box 9. If you are e-filing and if there is a code in this box, enter it when prompted by your software. The only valid characters are the letters […]

GSA issues 2019 CONUS per diems

The General Services Administration (GSA) has announced its fiscal year (FY) 2019 Continental U.S. (CONUS) per diem reimbursement rates. The GSA rates are often a predictor of the per diem rates set by the IRS. The IRS is expected to release its annual special per diem rates and guidance for taxpayers later in 2018. The […]

Here’s a reminder on the Oregon statewide transit tax

Oregon enacted a law in 2017 that included a new statewide transit tax (see Payroll Management Guide Report Letter 2520, September 5, 2017). On July 1, 2018, employers were required to start withholding the tax, one-tenth of 1% (.001) ($1 per $1,000) from: (1) wages of Oregon residents (regardless of where the work is performed) […]

SIFL rates issued for the second half of 2018

The Department of Transportation has released the applicable terminal charge and standard industry fare level (SIFL) mileage rates for July 1, 2018 through December 31, 2018. These rates will be used by the IRS to determine the value of noncommercial flights on employer-provided aircraft. The terminal charge is $42.88. The SIFL rates are $.2346 per […]

SSA to issue Form W-2 mismatch letters

Beginning in spring 2019, the Social Security Administration (SSA) will notify each employer with at least one Form W-2 where the name and social security number (SSN) do not match the SSA’s records and that corrections are needed. Actually, the SSA has already started mailing informational notifications to businesses and third parties, who submitted Forms […]

GAO issues report on the 2018 federal withholding tables

The U.S. Government Accountability Office (GAO) has issued a report on the 2018 federal income tax withholding process. Although Treasury and IRS described to GAO the process for updating the withholding tables, limited documentation of that process exists. For example, there is limited documentation of Treasury’s and IRS’s roles and responsibilities, according to the Report. […]

Maryland updates percentage method withholding tables

Maryland has updated the percentage method withholding tables to reflect an increase in the maximum standard deduction to $2,250. The tables were effective June 1, 2018. The tables are reproduced in this Report beginning at ¶6629. The wage-bracket withholding tables have not changed. All of the tables are reflected in the Payroll Management Guide beginning […]